US dollar falls slightly against Canadian dollar on Thursday

The US dollar has initially tried to rally during the trading session on Thursday, but then fell to break down a bit. The 1.2950 level has been a bit of a fulcrum for price, at least over the last several hours, and you can see clearly that the markets have flipped in both directions from that level. Because of this, the market looks as if it is awaiting some type of catalyst to move next. Obviously, oil markets will have their usual effect on the Canadian dollar, so pay attention to those markets as they will have a negative correlation, meaning that if the oil markets rally, this pair will fall and of course vice versa.

I believe that there is a significant amount of resistance at the 1.30 level, and it will of course take a lot of work to get through there. That’s an area that has been important more than once, and I think will continue to be very important. I think that the volatility will continue, especially when you think about the Canadian housing bubble, the oil markets, and of course the interest rates in the United States rallying. In other words, we have a massive amount of crosswind in this market, keeping the pair very noisy, and of course very difficult to trade. I would use a small position size until we get some type of impulsive daily candle. Until then, you may wish to be rather quick to take your profits.