US dollar rallied against Canadian dollar Monday

The US dollar has rallied significantly against the Canadian dollar during the trading session on Monday, showing the 1.2750 level to be supportive. We have exploded to the upside since then, so it looks as if we will continue to go higher. Further exacerbating this move is that we have not only seen strength in the US dollar around the Forex world but has also been influenced by the crude oil market breaking down. I believe that we will continue to go higher based upon soft CPI figures and other inflationary numbers coming out of Canada, and that the pullback in this pair is done.

I believe that the 1.2750 level should be massive support, and if we break down below there we could change back into a downtrend, but it looks to me as if the market is ready to continue going higher. I don’t necessarily think that the market is going to go straight up though, because this pair are very rarely does. Ultimately, this is a market that should continue to favor the upside in general, as interest rate hikes coming out of the United States are all but a done deal, and of course the situation in Canada has been thrown into question. I believe that the 1.30 level above will be very difficult to break above, but that certainly seems to be the next target for the buyers. Pay attention to oil markets, because if they start to strengthen drastically, that could be one of the major things to change this pair.

USD/CAD Video 24.04.18