Yahoo Finance Greenback falls against the Loonie during Tuesday session
The US dollar has fallen during the session again on Tuesday against the Canadian dollar, testing the vital 1.2750 level. This is an area that is crucial longer-term and has held as support several times recently. If we were to break significantly below this level, perhaps below the 1.27 handle, the market could very well find itself falling towards the 1.25 level over the longer-term. However, I think the interest rate situation in the United States shouldn’t be ignored, so I think that even if we do fall from here it won’t necessarily be as quickly as one would think.
Remember, Canada has its own issues so with the weaker than anticipated economic numbers coming out of that country, I think that will put a bit of a damper on any strength that the currency sees. Yes, I understand that a lot of people use the Canadian dollar as a proxy for the oil market, but quite frankly I think the oil market is getting a bit frothy as well. However, if we do get a major break out in oil, that obviously could trump everything that we look at in this pair.
This pair does tend to consolidate overall during the summer time, but strong oil has definitely kept the buyers from taking over completely. If we do bounce from here, look for resistance near the 1.29 level, and perhaps some type of range bound action as per the norm this time of year.
USD/CAD Video 23.05.18
This article was originally posted on FX Empire
