- The US dollar has plunged a bit during the trading session on Monday against the Canadian dollar as we find ourselves testing the 1.43 level again.
- The 1.43 level is an area that's been important multiple times, so it's not a huge surprise to see that we are near there.
- And at this point, I have to ask the question as to whether or not buyers will return.
It'll be interesting to see, but I think with the tariff news of the day, basically that the Trump administration may favor more targeted tariffs than anything else. think you have a real possibility of the Canadian dollar getting a little bit of a reprieve.
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Whether or not that will be longer remains to be seen, but clearly, we have a scenario where there is support at 1.43, and then again at 1.42. So I'm essentially waiting for some type of pullback that shows signs of a bounce that I can take advantage of. After all, there are still a lot of problems between America and Canada, and this is an argument that Canada loses. If we were to turn around and break down below the 1.4175 level, then things start to change from a technical analysis standpoint.
On an Agreement
Furthermore, if there's some type of agreement between the Americans and the Canadians that will almost certainly favor the Canadian dollar, at least in a knee jerk reaction type of way. In general, this is a very noisy market. We need to keep that in mind. And it is very news driven at the moment. So technical analysis helps. But the reality is all it takes is a tweet from Donald Trump or a statement from the Canadian various government officials, for example, Mark Carney, to make this market fly in one direction or the other. So, the most important thing here is to pay attention to your position size.
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