Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CAD Forecast: Look to Buy Dips

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The US dollar has initially dipped against the Canadian dollar during trading on Wednesday, which makes a certain amount of sense, considering that we had shot straight up in the air during the day on Tuesday.
  • We also have had to worry about the FOMC meeting, so, a little bit of profit taking makes a lot of sense.

However, the trend to the upside is very much intact and I think at this point in time the market is one that you will be looking to buy dips in. Underneath I see the 50 day EMA offering a significant amount of support just above the 1.36 level. 1.36 is an area that has been important multiple times as resistance and has shown itself to be full of market memory.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Tuesday was impressive.

In general, the size of the candlestick on Tuesday does tend to dictate that we will eventually go higher, and I think at this point, the short-term pullbacks make a lot of sense as entry points. If we can continue to find buyers and interest rates in America remain fairly tight, then the U.S. dollar could very well go looking to the 1.39 level, which is an area that previously had been very resistant.

USD/CAD Forecast Today 02/05: Look to Buy Dips (graph)

On the other hand, if we were to break down below the 1.36 level and the 50-day EMA as a result, then we could go looking to the 1.35 level which is near the 200-day EMA. In general, I do like buying the dollar of the Canadian dollar as the Canadian economy itself has plenty of issues. With this, I think we will remain bullish over the longer term, I think it’s probably only a matter of time before we make a bigger move. With the inflationary problems in the United States, we may see higher rates for much longer than anticipated. With that being said, a lot of this will come down to what we see during the press conference on Wednesday, but at the end of the day, I think the trend is set.

Ready to trade our Forex daily analysis and predictions? Check out the best currency exchange broker Canada for you. 

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews