The US dollar fell a bit against the Canadian dollar during the session on Thursday, but found enough support near the 1.3480 level to turn things around and start going higher again. After the impulsive move on Thursday and the very bearish oil inventory numbers, it makes sense that the Canadian dollar will continue to suffer. We do have the Canadian employment figures coming out today, but longer-term and less at some type of major shock, I don’t think it’s going to affect where this pair goes as the Canadian dollar is almost solely traded as a proxy for the crude oil market by currency firms. Having said that, the employment numbers supposed to be an addition of 11,000 jobs for the month of May, so keep that in mind when it comes out. Nonetheless, I do believe that the buyers will continue especially considering that the market has been forming a little bit of a bullish like flag on the hourly chart if you use a little bit of artistic interpretation.
Buying dips, 1.35 crucial
I believe that buying dips going forward will probably be the way to go, and that the 1.35 level continues to be crucial for the longer-term move. I believe that the market will probably continue to reach towards the 1.36 handle, and that level should be very resistant. If we can break above there, then the market should continue to go much higher. I believe that the oil markets will continue to find quite a bit of bearish pressure longer-term, and therefore I believe that not only will we break above the 1.36 level in this market, but we will go much higher. I believe in the longer-term uptrend in this market, and have no interest in shorting as a result.
Written by FX Empire