The US dollar initially fell during the trading session on Tuesday, reaching down towards the uptrend line underneath, which is coinciding with the 1.34 level underneath. That’s an area that is significant support in the short term, and of course with the uptrend line crossing through there suggests that the buyers are starting to make a bit of a stand here.
The 1.35 level above is massive resistance, so it’s very unlikely that we will just slice through there easily. However, it certainly looks as if it will be a target in a bit of a “low grinder.” However, if we were to get a move above there, then it opens the door to the 1.36 handle. While most people talk about the Canadian dollar in terms of being influenced by crude oil, the reality is that this pair doesn’t act quite the same as the Americans are the world’s largest producer of crude oil now.
The uptrend lines marked on the chart underneath suggests that we should have plenty of buyers underneath, and that we will eventually break out. You will need to be patient, but also you should keep in mind that there are a lot of concerns in candid out with the banking system and of course housing market. Beyond that, we also need to keep in mind that the US dollar should continue to attract a lot of inflow due to the treasury market which is absolutely on fire. With this, it makes sense that the greenback continues to do fairly well against commodity currencies, such as the Canadian dollar. The 1.36 level above is going to be resistive, but I suspect not as much is the 1.35 handle has been. This pair does tend to kind of grind back and forth, because of the intertwined nature of the two economies, but it is most certainly one that you should be looking for value on dips in.
The 1.35 level above is massive resistance, so it’s very unlikely that we will just slice through there easily. However, it certainly looks as if it will be a target in a bit of a “low grinder.” However, if we were to get a move above there, then it opens the door to the 1.36 handle. While most people talk about the Canadian dollar in terms of being influenced by crude oil, the reality is that this pair doesn’t act quite the same as the Americans are the world’s largest producer of crude oil now.
The uptrend lines marked on the chart underneath suggests that we should have plenty of buyers underneath, and that we will eventually break out. You will need to be patient, but also you should keep in mind that there are a lot of concerns in candid out with the banking system and of course housing market. Beyond that, we also need to keep in mind that the US dollar should continue to attract a lot of inflow due to the treasury market which is absolutely on fire. With this, it makes sense that the greenback continues to do fairly well against commodity currencies, such as the Canadian dollar. The 1.36 level above is going to be resistive, but I suspect not as much is the 1.35 handle has been. This pair does tend to kind of grind back and forth, because of the intertwined nature of the two economies, but it is most certainly one that you should be looking for value on dips in.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.