USD / CAD Technical Analysis Dec 21

Can the stability at 1.3293 lead the USDCAD lower?

The pair has been recently oscillating between the range of 1.3424 and 1.3293 as the sellers took their chances to control the price.

The buyers attempted to place greater pressures since the 14th of December 2016 and managed to force the price from 1.3078 to 1.3424. Today’s major pivot point area is the 1.3293 level.

Probable Scenario

The latest stabilization of the pair slightly close to the 1.3293 area is a good indication that the price may retrace to the downside.

In the event where the pair drops, the sellers could lock their profit at 1.3078.

The Stochastic oscillator confirms the downtrend formation thus showing that the pair has greater probabilities of resuming downwards.

Alternative Scenario

In contrast, in the condition where the bullish pressures get more tensed and the pair breaks above the 1.3424 level, the price could rise to 1.3636.

Today’s Major Announcements

  • The EIA Crude Oil Stocks Change (Dec 16) release is expected to have a strong influence on the U.S. dollar
  • There are no any major announcements that may have an impact on the Canadian dollar

Synopsis

·         Probable trend (Bearish): 1.3293

·         Bearish take profit target: 1.3078

·         Stop loss target: 1.3424

·         Alternative trend (Bullish): 1.3424

·         Bullish take profit target: 1.3636