Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CAD Forex Signal: Continues to Strengthen

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Potential signal:

  • I am a buyer at 1.4010, with a stop at 1.39, and a target of 1.4350 above.

As you can see, the US dollar has rallied rather significantly during the course of the trading session on Friday, and probably got a little bit of a boost due to the fact that the Canadian employment numbers were weaker than anticipated. So, this is a turnaround and strengthening of the greenback that makes a bit of sense for the session.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

That being said, the US dollar has been rallying for some time, and therefore I think this is just a simple repudiation of the selling pressure from the previous session. Keep in mind that interest rates in America continue to climb in the bond market, despite the fact that the Federal Reserve has done everything it can to cut rates and keep them down. The US dollar will continue to strengthen based upon what traders have to say in the bond market, so watch those yields.

USD/CAD Signal Today 11/11: Continues to Strengthen (graph)

Short-term pullback should see plenty of support near the 1.38 level, which of course is an area where we've seen action in both directions previously. I think each time the USD/CAD market pulls back, we are just simply waiting to try to build up enough momentum to finally break above the 1.40 level.

On a Move Higher

[graph_5758]

Anything above the 1.40 level will almost certainly send the US dollar much higher and it could very well show the US dollar strengthening against most currencies not just the Canadian dollar. Beyond that you also have to keep in mind that the oil market is relatively soft and that has a knock-on effect on the greenback and the Canadian dollar both. So, with all of that being said, I like this pair to the upside, but I recognize we have a lot of work to do to finally break out. If and when we do, this could be a massive move just waiting to happen, but we need some kind of serious catalyst at the moment.

Ready to trade our Forex USD/CAD predictions? Here are the best Canadian online brokers to start trading with. 

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews