The US dollar initially declined against the Canadian dollar on Thursday, but later strengthened, indicating potential for further upward movement. If the 1.3750 level is surpassed, the next target could be 1.3850, which was a recent resistance point. Breaking above this could lead to a move towards 1.39, a significant resistance area in the past.
Buying on dips is the preferred strategy for this pair, with potential for a more sustained uptrend if the 1.39 level is breached. Volatility is expected, so taking advantage of opportunities to buy the US dollar at lower levels is advisable.
Although crude oil used to heavily influence the USD/CAD pair, the US’s increased oil production has lessened this impact. Geopolitical concerns may provide support for the greenback. Traders may want to consider these factors when making trading decisions.
Overall, the outlook for the USD/CAD pair suggests potential for further gains, with buying on dips being a favored approach.