The USD/CAD pair rose during the course of the day on Friday after the better than anticipated nonfarm payroll announcement. Needless to say, the fact that we had formed a hammer on Thursday suggests that the buyers were already starting to step into this marketplace. I do like the fact that we are above the 1.12 level now, and with that we are more than likely going to see this market go much higher. I believe currently that we are probably going to aim for the 1.15 level.
Pullbacks at this point in time will continue to offer value in the US dollars far as I can see, and I believe that is the case with most markets that involve the US dollar. The Canadian economy is not been helped by oil prices, so although they send 85% of their exports into the US, the Canadians are not getting the type of boost economically that you would normally anticipate. With that being the case, I believe that the Canadian dollar continues to sell off given enough time, and as a result I am very bullish.
1.15 And beyond.
I personally believe that we are going to the 1.15 level first, and then possibly even beyond that. I believe that this market tends to trend for long periods of time, and as a result if you are patient this is an excellent pair to trade. It’s a nice investment type trade, as it does chop around from time to time, but does tend to have nice trending capabilities.
I believe that the 1.10 level is pretty supportive as well, so therefore I think that pullbacks to that area will continue to attract buyers and I would be looking for shorter-term candles in order to find buying opportunities. I believe that the “floor” is at the 1.10 level, and therefore I don’t see any opportunity to sell this market until we get below that level, which looks very unlikely to me at this point in time.
