CAD Strengthens Against USD As Oil Rises

With the Canadian dollar strengthening against the US dollar as oil prices rise above $41, I expect some more weakness for the USD/CAD pair over the coming days and a possible pull back even towards 1.29. However, my longer-term view for a push towards 1.33-1.36 is still in play.

USD/CAD Daily Chart

Blue lines – long-term triangle pattern

With a possible fake breakout above 1.3150 USD/CAD is making lower lows and lower highs. Price is most probably heading towards daily cloud support at 1.29 where I will look to open long positions. I continue to believe that the correction of the entire decline is still not over and that this pair should at least make a strong bounce towards 1.33 if not 1.36.

USD/CAD 4-Hour Chart

Green line – short-term support

USD/CAD has broken below the 4 hour Kumo (cloud) support and the short-term triangle pattern targeting the green trend line support at 1.2970. With NFP announcement today we should expect some wild movements in all dollar pairs. My longer-term view remains bullish so I continue to expect a large scale reversal, either from current levels or from 1.29.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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