- The US dollar continues to see a lot of noise to the upside and momentum, especially now that we are looking at this through the prism of a market that I think, will continue to favor the US dollar over the longer term.
- And with the jobs number coming out on Friday, that could be your next catalyst, as the Federal Reserve will have to keep the employment situation in the back of their mind.
US Will Be the Focus of Friday Session
The Canadians do not report their employment figures this month of the same Friday. But I think at this point in time, the Bank of Canada has a very difficult needle to thread mainly due to the fact that the tariffs are almost certainly going to be levied on Canada pretty heavily. And of course, not having a trade agreement with your trading partner that makes up almost 25 of your GDP is not a good look. So short term pullbacks, I think are possible, but they will more likely than not be buying opportunities.
I would love to see the US dollar plunge a bit initially only to bounce so I can buy it, offering a bit of value in that move. The two hundred day EMA is sitting just below the 1.39 level. And if we can break above there, then the market really starts to take off.
Ultimately, this is a market that I think will continue to be very noisy, but we have just printed the sixth positive day in a row from a triple bottom. So, I do think the trend is changing. I also recognize it will be very noisy, but I favor the US dollar or perhaps more specifically. I don’t like the Canadian dollar.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.