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: Drifting Lower Against CAD

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.
  • In my daily US dollar, Canadian dollar analysis, it's easy to see that the market is trying to see a lot of volatility come into the picture.
  • Although the US dollar initially rallied during the trading session, the market then fell rather significantly to show signs of negativity.
  • At the end of the day, this is a market that I think continues to be very difficult to get your hands on, that of course makes a certain amount of sense due to the fact that there are a lot of questions about the US economy and whether or not the Federal Reserve is going to start cutting rates.

That being said, the Canadian economy of course is going to continue to struggle. And ultimately, I do think that the US dollar will bounce against the Canadian dollar, but in the short term, you're probably going to continue to see a lot of noisy behavior.

Top Forex Brokers

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

Potential Support

The 200 day EMA is sitting just above the 1.36 level, and that might be where we're heading. We'll just have to wait and see. The market, of course, will be paying attention to the retail sales and weekly unemployment claims numbers coming out on Thursday from the US. Really at this point in time, not a lot out there when it comes to Canada that people will be paying attention to other than probably the bond spreads between the US and Canada.

USD/CAD Forecast Today 15/8: Drifting Lower (graph)

If we get a sudden risk off spike, then it's possible that we could see this market really turn around and show signs of strength heading towards a 1.38 level. But USD/CAD is a pair that's typically choppy regardless, mainly just due to the fact that market participants really don't have much in the way of directionality outside of cross-border transactions and the massive amounts of commercials that are involved. After all, the two economies are heavily interconnected, as the Canadians main destination for exports is the United States.

Ready to trade our daily Forex analysis? We’ve made a list of the best forex brokers accepting Canadian clients to trade Forex worth using. 

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