After last week’s theatrics, the US Dollar Index (DXY) is back in a range. Regardless of that, US Oil sets to push to new yearly highs and USDCAD looks to fall lower.
After creating a new yearly high at $74 per barrel, US Oil took a bit of a detour with price consolidating in a range of about 140 points. Today price has officially cleared that high and is looking to push to the next target of $77 per barrel. Today’s daily candle will most likely close as a hammer, suggesting further upside next week.
On the contrary, USDCAD, despite the recent reversal on the Dollar is looking to head lower. After creating a new high for the quarter, USDCAD printed a shooting star candle on the daily and has fallen sharply since then. With Oil expected to push higher, traders can expect USDCAD to face immense selling pressure.
Next week we will have another Non-Farm Payroll (NFP) release. Current forecasts are bullish with unemployment dropping to 5.7%. If this holds, we could see the Dollar resume last week’s rally.
Directory:
- Sign up for a Free Membership.
- Login to watch full recorded webinars in our Forex Trading Room.
- Chat with our traders in the Community Discord Server.
- Read yesterday’s breakdown: Dollar Stuck in a Range, Gold Priming for Next Push Lower
