The US dollar has found itself somewhat positive during the Tuesday session against the Canadian dollar, as the Greenback continues to be resilient.
- The US dollar has found itself somewhat positive during the early hours here on Tuesday as we continue to dance around a couple of moving averages.
- Keep in mind that the Canadian dollar is moved by oil most of the time, although this pair does not move as often anymore, as the United States produces 13.5 million barrels a day.
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But we have recently seen a potential move in Venezuela that could create a rival to Canada for heavy crude oil, and therefore, that comes into play a little bit here. A cautious Bank of Canada, which is currently at 2.25%, versus a resilient Federal Reserve, which, despite economic numbers, really isn't in a position to cut aggressively, keeps this pair somewhat bid.
Market Targets and Technical Outlook
Right now, I think we are looking at a potential move to the 1.40 level, but that doesn't mean it will be a clean move, and quite frankly, knowing this pair as I do, I'd be a bit surprised if it were. I have no interest in shorting. I think we're in the middle of trying to sort out the next range, and I would look at the 1.3750 level as still being somewhat important.
If we can break above the 1.40 level, then 1.41 gets targeted. This is a very noisy pair, but I think the buyers are definitely in control here, and it is worth noting that the US dollar has been bid against the Euro, the Pound, and multiple other currencies as well. I remain bullish. I don't know that this one's going to be a huge mover, but that's the direction I'm looking.
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