- During my daily analysis of major currency pairs, the USD/CAD pair has caught my attention, due to the fact that we continue to consolidate overall.
- After all, the market has been hanging around the 1.40 level for some time, and it’s also worth noting that the Friday session will be a major fulcrum for momentum in both of these currencies.
Friday Will Be Important
On Friday will be important, mainly due to the fact that we have the Non-Farm Payroll announcement coming out the United States, when we get the official employment figures coming out of America for the previous month. At the same time, we will get Canadian employment figures, so this currency pair will be Ground Zero for what happens in the Forex markets during that timeframe, and therefore I think we could have a fairly big move.
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Looking at this USD/CAD pair, I think there is a significant amount of support to be found all the way down to the 1.39 level. The 1.39 level also features the 50 Day EMA, a technical indicator that a lot of people will be paying close attention to. To the upside, we have the 1.41 level, which has been a significant amount of resistance previously. If we can break above that, then the US dollar will almost certainly go looking to the C$1.42 level. This is an area that has had significant resistance previously, and therefore I think you have to understand that the market will have a big amount of pushback if we get to that area, but breaking above the 1.42 level could open up a huge move higher.
Regardless, you need to keep in mind that this is a market that is typically choppy, so I don’t expect that to be any different anytime soon. However, I also believe that you need to understand that the US dollar is essentially destroying everything in its path this year, and I don’t know that it will change anytime soon. However, will have to wait and see what happens.
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