The US dollar has been showing strength against the Canadian dollar, with potential for further gains. The current levels present a buying opportunity, with a target of 1.39. The US dollar’s rise can be attributed to strong job numbers in the United States, while Canada has recently cut rates. Traders are likely to push the pair towards 1.39, although the market remains choppy due to the high volume of trade between the two economies.
Short-term pullbacks offer value for traders, and breaking above 1.39 could lead to a test of 1.40. The interest rate differential between the US and Canada also favors a long position. Support levels are seen at the 50-day EMA and 1.36. Despite some recovery in crude oil prices, it has less impact on this pair as the US is producing enough oil domestically. Overall, the outlook is bullish for the US dollar against the Canadian dollar.