US dollar continues hammering against Canadian dollar
Looking at the USD/CAD pair, it’s obvious that the US dollar should continue to go much higher. The 1.3350 level should continue to offer resistance as we have seen it come into play the last couple of weeks, and now it looks as if we are testing it again during the Tuesday session. This makes sense, because there is a lot of negativity when it comes to crude oil currently, and the Canadian dollar of course is a bit of a proxy for that market.
Looking at this chart, you can also see that the 50 day EMA is ready to turn around and break above the 200 day EMA which is a very bullish sign, quite often referred to as a “golden cross.” If we can break above the 1.3350 level, then we have a bit of trouble at the 1.34 handle, but I think it’s only a matter of time before we break towards the 1.35 handle after that. I believe that the pair will continue to go higher not only due to the crude oil markets falling over, it’s also the fact that the US Treasury markets continue to find plenty of money flowing into it. With that being the case, I think that the demand for the US dollar will continue, as there is a major “run for safety” globally. I think this continues, and with central bankers meeting in Jackson Hole this week, it’s possible that we may see more concerned enter the markets, sending the USD/CAD pair into a bit of a “feedback loop.”
I would have no interest in shorting this market until we get down below the 50 day EMA, which is quite a bit lower than where we are right now. This simply looks like a market that is trying to build up the necessary momentum to continue the slow and steady grind higher.
Looking at this chart, you can also see that the 50 day EMA is ready to turn around and break above the 200 day EMA which is a very bullish sign, quite often referred to as a “golden cross.” If we can break above the 1.3350 level, then we have a bit of trouble at the 1.34 handle, but I think it’s only a matter of time before we break towards the 1.35 handle after that. I believe that the pair will continue to go higher not only due to the crude oil markets falling over, it’s also the fact that the US Treasury markets continue to find plenty of money flowing into it. With that being the case, I think that the demand for the US dollar will continue, as there is a major “run for safety” globally. I think this continues, and with central bankers meeting in Jackson Hole this week, it’s possible that we may see more concerned enter the markets, sending the USD/CAD pair into a bit of a “feedback loop.”
I would have no interest in shorting this market until we get down below the 50 day EMA, which is quite a bit lower than where we are right now. This simply looks like a market that is trying to build up the necessary momentum to continue the slow and steady grind higher.