Potential signals:
- I’m optimistic about this currency pair. With a breach of the 200-day EMA, I plan to keep buying, aiming for targets around 1.38 and 1.3990.
https://www.youtube.com/watch?v=5e7jvterrvs
On Wednesday, trading was relatively subdued, with the US dollar fluctuating slightly against the Canadian dollar within a narrow band. The 200-day EMA was a focal point, creating some technical noise. If that level is breached, there’s a chance we could see a rise towards the 1.40 mark.
The market could see a pullback, potentially testing the 50-day EMA around the 1.38 or maybe even the 1.3750 area. If we maintain these levels, I feel optimistic about making gains in the near future.
There are no national trade agreements
It’s understandable that the lack of a solid trade agreement between the United States and Canada might weigh more heavily on Canada. Presently, there’s a lot of global uncertainty, which tends to bolster the appeal of the US dollar. I see ongoing short-term pullbacks as buying chances rather than opportunities to sell. The interest rate gap is still favorable for the US dollar, so I’m hesitant to sell until the pair drops below 1.3550. I really believe we are poised for a rally that, given time, could lead to significant upward movement.
Christopher Lewis has spent over 20 years trading foreign exchange and offers insights into the financial markets. He has contributed to various online platforms, including FX Empire and Investing.com. His approach generally favors technical analysis, and he typically takes a long-term view on trades, often holding positions for days or weeks.
