• The loonie advances some 0.55% during the New York session.
  • US equity futures point to a lower open in a short-trading session in Wall Street.
  • USD/CAD Price Forecast: A break of an upslope trendline might open the door towards the 50-DMA at 1.2652.

The USD/CAD drops to fresh three-week lows during the New York session, trading at 1.2677 at the time of writing. The last trading day of the year has a downbeat market mood; despite that Asian equities closed in the green, European stock indices like the CAC40 and the FTSE 100, the only ones open, are down, while US equity futures slide.

Thin liquidity conditions and a weaker US dollar across the board boost the prospects of the loonie, despite US crude oil prices falling around 1%, as investors close their books, aiming towards 2022. Nevertheless, the US central bank hawkish pivot led by Fed’s Chief Jerome Powell, appearing at the congress on November, emphasizing that inflation is no longer “transitory,” put a lid on the USD/CAD fall, as market participants assess which of the Fed and the Bank of Canada (BoC) would be the first to pull the trigger hiking rates.

USD/CAD Price Forecast: Technical outlook

The USD/CAD daily chart depicts the pair as upward biased in the long-term, but a technical break of an upslope trendline drawn from October 2021 swing lows, paves the way for further losses, as CAD bull’s aims for a test of the 50-day moving average (DMA) at 1.2652.

In the event of breaching the aforementioned, the following USD bulls line of defense would be the 100-DMA at 1.2626, immediately followed by the December 8 swing low at 1.2607.

On the other hand, the first resistance would be 1.2700. A break above that level would expose the December 30 swing low support-turned-resistance at 1.2734. and then the upslope trendline break around the 1.2740-60 area.

USD/CAD

Overview
Today last price 1.2677
Today Daily Change -0.0070
Today Daily Change % -0.55
Today daily open 1.2747
 
Trends
Daily SMA20 1.2799
Daily SMA50 1.2648
Daily SMA100 1.2626
Daily SMA200 1.2498
 
Levels
Previous Daily High 1.2813
Previous Daily Low 1.2738
Previous Weekly High 1.2964
Previous Weekly Low 1.2786
Previous Monthly High 1.2837
Previous Monthly Low 1.2352
Daily Fibonacci 38.2% 1.2766
Daily Fibonacci 61.8% 1.2784
Daily Pivot Point S1 1.2719
Daily Pivot Point S2 1.2691
Daily Pivot Point S3 1.2644
Daily Pivot Point R1 1.2794
Daily Pivot Point R2 1.2841
Daily Pivot Point R3 1.2869

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD eyes more weakness despite higher-than-expected monthly Retail Sales data

AUD/USD eyes more weakness despite higher-than-expected monthly Retail Sales data

The AUD/USD pair is expected to slip down to near 0.6400 despite the release of the lower-than-expected monthly Retail Sales data. The economic data has landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%.

AUD/USD News

EUR/USD dribbles on the way to 0.9465

EUR/USD dribbles on the way to 0.9465

EUR/USD holds lower ground near the 20-year bottom, sidelined of late. Oversold RSI tests bears around January 2001 peak. Bearish MACD signals, clear break of previous support from July keep sellers hopeful.

EUR/USD News

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold price is displaying a dull performance as investors have sidelined ahead of the speech from Fed chair Jerome Powell. The precious metal is juggling around $1,630.00 after a modest decline from the critical hurdle of $1,640.00.

Gold News

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

Read more

Lower gas prices and favorable views of labor market again boost confidence

Lower gas prices and favorable views of labor market again boost confidence

The Consumer Confidence Index rose to its highest level since April, and now sits more than 12 points higher than where it was just two months ago. Falling gasoline prices and a still-tight labor market are the main reasons we have seen a recent rebound in confidence.

Read more

Forex MAJORS

Cryptocurrencies

Signatures