USD/CAD slides to fresh weekly lows under 1.2700

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.

Christian Borjon Valencia FXStreet

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

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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