- The US dollar has been slightly negative during the early hours on Monday, as we continue to see a lot of volatility in the Forex world.
- That being said, it’s likely that we are looking at this through the prism of a major barrier above trying to be broken, in the form of the 1.40 level. The 1.40 level is a massive barrier to overcome, and I think at this point in time, if we were to break above the 1.40 level, it’s likely that the US dollar would really take off.
Technical Analysis
Top Forex Brokers
The technical analysis for this market is starting to become more bullish, with the 1.39 level potentially offering short-term support. That was the top of a consolidation range between the 13725 level and the 1.39 level, so it does make a certain amount of sense that we could see of value hunting on any pullback at this point, and perhaps an attempt to build up enough momentum to finally smash through the 1.40 psychological barrier. This is a market that I think continues to see a lot of volatility, but I think it also will be a bit hesitant to simply take off straight up in the air, because it’s not necessarily the nature of this market.
Keep in mind that the United States and Canada still are very intertwined, and therefore, it tends to be a bit of a choppy pair in general. Ultimately, this is a market that will continue to be very noisy, but I also recognize that it is a market that is dealing with the idea that the United States would be slowing down a bit, and that of course makes a huge impact on the Canadian economy, as the United States ends up being 25% of Canadian GDP is far as exports are concerned. With this being said, this is a market that I prefer to buy dips in.
Ready to trade our USD/CAD daily analysis and forecasts? Here's a list of the best Forex Trading platform in Canada to choose from.