Advertisement
Australia markets closed

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • AUD/USD

    0.6425
    -0.0000 (-0.00%)
     

  • OIL

    83.57
    +0.84 (+1.02%)
     

  • GOLD

    2,410.20
    +12.20 (+0.51%)
     

  • Bitcoin AUD

    100,522.35
    +2,290.30 (+2.33%)
     

  • CMC Crypto 200

    1,380.27
    +67.65 (+5.16%)
     

  • AUD/EUR

    0.6027
    -0.0003 (-0.06%)
     

  • AUD/NZD

    1.0900
    +0.0025 (+0.23%)
     

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NASDAQ

    17,177.87
    -216.44 (-1.24%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • Dow Jones

    38,077.02
    +301.64 (+0.80%)
     

  • DAX

    17,737.36
    -100.04 (-0.56%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

USD/CAD Price forecast for the week of December 11, 2017, Technical Analysis

Christopher Lewis
Updated
The US dollar rallied against the Canadian dollar, as we are looking to finally break out and test the 1.30 levels above.

The US dollar initially pulled back during the week, but then rallied significantly from the lows. In fact, we are reaching towards the top of the shooting star from the previous week, so this tells me that we are testing significant selling pressure, perhaps extending to the 1.30 level. For the longer-term trader, I believe that a move above the 1.29 level is a very strong sign, but we are not necessarily “in the clear” until we climb above and close above the 1.30 handle. Pay attention to the crude oil markets, because quite frankly it’s likely that the usual correlation between the Canadian dollar and crude oil markets will continue.

Alternately, if we pull back from here I think that the 1.2650 level will continue to offer support. There is a lot of noise in this area, and of course the economies are highly interconnected so that is typical. You may have to drill down to the short-term charts for entries, but in general I believe that the “higher high” that we made recently is a good sign that the trend to the upside looks ready to continue. If we break down below the 1.25 handle, then I feel that the market could go down to the 1.20 level after that. I think that would take a strong oil market, which seems to be running into serious trouble in the meantime, thereby making it very unlikely to happen. Volatility dictates that small positions should be taken, and only added to once you see gains in your position. Wide stops will probably be necessary, and by keeping the position size small, you should get an opportunity to allow the market to reach to the upside, and keep your account safer.

USD/CAD Video 11.12.17

This article was originally posted on FX Empire

More From FXEMPIRE: