US dollar continues to pound against resistance versus Canadian dollar

The US dollar has rallied a bit during the trading session on Monday and what would have been a very quiet session as Americans were away for the Memorial Day celebrations. Ultimately, this market looks as if it is trying to break above a major resistance barrier, and that of course is something to pay attention to. · FX Empire

Christopher Lewis

Updated Mon, May 28, 2018, 9:45 PM

The US dollar has been very choppy yet positive during the trading session on Monday, reaching towards 1.30 level. If we can break above that level, then the market could go much higher, as it is a large, round, psychologically significant figure, and it is an area that has been important more than once. We can clearly see that the market is trying to go higher, but there is a major barrier to overcome. I think that the market will ultimately go much higher, and it makes quite a bit of sense as oil markets are falling apart due to more production coming online, and of course there is a major interest rate move in the United States dollar continuing to push the greenback higher.

Oil markets falling will continue to push the Canadian dollar lower in value, and beyond that I think there are a lot of economic concerns coming out of Canada right now as well. Because of this, I think that the pair will continue to favor the upside, but we obviously have a lot of work to do, perhaps reaching towards the 1.35 handle above. I think that the 1.29 level underneath is going to be massive support, as it was previous resistance. I think that the market continues to find buyers on dips, as it offers value going forward in which is a very strong move recently. If you are patient enough, you should be able to realize a nice trend.