US dollar rallies against Canadian dollar on Friday

The US dollar spiked against the Canadian dollar during trading on Friday, as we broke through resistance at the 1.2925 level. You can see that there was a bit of an ascending triangle proceeding that, so it makes sense that we would see this market go to the upside. That being the case, the 1.30 level above could be a target, but I also recognize that historically speaking it has been very important and I expect the market to push back at that level. If we were to break above that level, it would be a very strong sign and should send this market much higher.

I think at this point, we are likely to see a bit of a struggle there, so although it looks very bullish, by the time you see this video it’s probably best to wait to see if we can get some type of daily close above that level before thinking about buying. Even then, I suspect that you would need to give at least the 100 pips stop loss. Ultimately, the market will continue to favor the US dollar over the summer, but to slice to this level and continue going higher in one move is very unlikely as it has been so important in the past going back years. That being said, the 1.29 level underneath should offer a bit of a “floor” now. If we did break down below there, that would be very negative, but I think it would also be the market is trying to reset itself going to try to find buyers again.