USD/CAD Forecast September 14, 2017, Technical Analysis

2017-09-14

The US dollar had an interesting session on Wednesday, as we initially fell, but found enough support near the 1.2125 level to turn around and break out above the 1.22 handle. I think the market will continue to go higher, at least for the short term. However, I recognize that some of this reaction is due to potential tax reform coming out of the United States, but at the same time the Canadians are much more likely to raise interest rates and we broke below a significant uptrend line on the weekly chart. Because of this, I believe that we will eventually see and exhaustive candle that we can start selling, especially near the 1.23 region. Ultimately, the market continues to go lower until we can clear the 1.25 level which would change the trend of to the upside yet again.