Hi there traders this is Steve Miley for forextraders.com and here we’re going to take a look at the short term outlook for the US dollar versus the Canadian dollar spot FX rate.
Well, still a strong recovery effort in here from the middle of September in here and the overall positive tone in here for the US dollar – it’s a negative tone for the Canadian dollar. Positive US; negative Canadian dollar in here.
And that’s particularly insightful given that we had the big spike up in the oil price last week, although we had, then, a subsequent setback in the oil price. So a spike higher in the oil price should’ve been positive for the Canadian dollar seeing USDCAD lower.
But we did get the initial move lower, but then a strong rebound up to a new recovery high. The underlying theme since Mid-September remains positive and we see upside pressures very much intact. Even though the intermediate term outlook remains relatively negative whilst below 1.3382, a push above 1.3382 would send the intermediate term outlook to more bullish and we do see an upside threat back up to 1.3310 and then 1.3339, maybe 1.3382/83 into the beginning half of this week.
For today, looking for a challenge up to 1.3310 and above. Only below 1.3229 down here would see the very short term outlook shift to more negative.
This has been Steve Miley for forextraders.com.
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