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: Recovers 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.
  • The US dollar has been quietly positive against the Canadian dollar during the early hours on Monday as it looks like we are trying to threaten the 1.36 level.
  • The 200 day EMA is just above the 1.36 level, so I think there is a certain amount of technical trading that needs to be looked at in that region.
  • This is a market that tends to be very technical and choppy, so this would make a lot of sense if it were to be the case.

If we can break above there, then I think it would be a very positive sign for the greenback. Keep in mind that the Canadian dollar is highly sensitive to crude oil, so it'll be interesting to see where that comes into the picture. The jobs report, being so weak on Friday has ran the market into safety, which means it runs it into the US dollar.

Top Forex Brokers

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

On a move higher…

A move above that 1.36 level and the 200-day EMA, it's possible that we could go look into the 1.38 level after that. Short-term pullbacks I think will continue to be looked at as potential buying opportunities as long as we can stay above the crucial 1.3450 level. That is an area that is extraordinarily important and breaking down below that could really open up a trapdoor for serious US dollar weakness.

USD/CAD Forecast Today 10/9: Recovers Against CAD (graph)

That being said, despite the fact that the Federal Reserve is almost certainly going to be cutting rates, the reality is that Canada already has a few times, and the Canadian economy is extraordinarily sensitive to the U S economy. Think of it as U S markets being the biggest consumers of Canadian goods. So, if the U S slows down, it has an extraordinary negative for Canada. With this being said, I do think that we need to watch the 1.36 level, but if we can get above there, the market can continue to go higher.

Ready to trade our Forex daily analysis and predictions? Here's a list of the best Forex Trading platform in Canada to choose from. 

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