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USD/CAD Price forecast for the week of March 19, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 17, 2018, 07:07 UTC

The US dollar finally broke above the Canadian dollar during the trading week, clearing the 1.30 level. This is an area that has been important more than once in the past, but I do see a lot of noise above, so it could be very noisy.

USD/CAD weekly chart, March 19, 2018

The US dollar broke above the 1.30 level, an area that has been very important going back several times over the last several years, and if we can finally clear this noise, this pair could go much higher. However, I think there is a lot of noise above, extending to the 1.35 handle. The markets will more than likely pull back, looking for support. The fact that we broke above the top of the shooting star from the previous week is a bullish sign, but at this point I am not completely convinced quite yet.

USD/CAD Video 19.03.18

A break above this week’s candle is a bullish sign, but again I see a lot of noise. Quite frankly, there are easier ways to short the Canadian dollar. For example, I have recently bought the GBP/CAD pair, because it is a much cleaner move. However, if oil markets roll over significantly, it’s likely that we will see this pair rally significantly as well, as it is so detrimental to the Canadian dollar. At this point, if we break down below the 1.29 handle, then I think the sellers may take over again. I expect a lot of noise over the next couple of weeks, so certainly it is a market that you should be careful with. I suspect that we will continue to go higher, but it’s not to be the easiest trade to take. Keep a small position and keep an eye on the WTI Crude Oil market.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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