• The US dollar has initially fallen against the Canadian dollar But it does look like it is trying to fight back a little bit here
• Keep in mind that this is a market that has been very interesting as of late as we have fallen pretty significantly.
• We also have to keep in mind that market participants will be paying close attention to the tariff war between the two countries.

While it has cooled off a bit, the reality is that it is still a situation that is fluid. The Canadians have an election coming up in a just a few days. So really, I think you have to keep in mind that it is possible that there will be reaction to that in the form of how the US may respond or how the new leadership in Canada may deal with the US. One would assume that tensions could cool off a little bit if the conservatives win, but if they do not, then it could cause issues.

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This Area Has Been Important More than Once

Regardless, the 1.3850 level is an area of interest that I've seen multiple times in the past, and I will continue to pay close attention to it, as this is an area that previously had been significant resistance, and it should now be support. Whether or not we can truly take off to the upside remains to be seen, but the 200-day EMA sits just above the 1.40 level.

That might make a nice short term target if the US dollar does in fact recover a bit not only against the Canadian dollar but multiple other currencies as well. At this point, the US dollar continues to move in tandem against almost everything else at this point in time.

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