- The U S dollar has plunged against the Canadian dollar during the trading session on Tuesday.
- The market looks very much like a market that is just moving on the news of the US dollar overall because it's not really a situation where I see a lot of Canadian dollar strength overall.
- But what I do see is US dollar weakness. So, I have a question about the market at the 1.3550 level and whether or not that's going to hold as support.
- If we turn around and rally from here, the market could go looking at the 1.38 level, which is a large round psychologically significant figure. And we also have the 50 day EMA sitting just above there.
Still No Trade Agreement
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There is no trade agreement between the Americans and the Canadians still. So, it's interesting that this market is falling the way it is. Quite frankly, at the first sniff of US dollar strength, this pair will turn right back around because quite frankly, the Canadian dollar is not something most people want to own right now.
If we can turn around and break above the 1.38 level, that sends this pair going higher perhaps to the 1.40 level. A breakdown below the 1.335 level is a pretty negative turn of events and then at that point in time you probably have a Certain amount of US dollar weakness across the board and I don't know what the Canadian dollar is the currency that I want to own against the greenback
But there will be several out there that I would be interested in the British pound might be a good choice all things being equal This is a market that I think continues to be noisy and shortly, I believe that we will continue to see a lot of back and forth overall. And with this, I remain somewhat neutral in this market, but I am watching these two levels very closely.
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