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USD/CAD Daily Forecast – U.S. Dollar Rebounds After Recent Pullback

By:
Vladimir Zernov
Published: Dec 17, 2021, 17:03 UTC

USD/CAD is testing the resistance level at 1.2825.

USD/CAD

In this article:

Canadian Dollar Is Losing Ground Against U.S. Dollar

USD/CAD is currently trying to settle above the resistance at 1.2825 while U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index managed to settle back above the resistance at 96.25 and is trying to get to the test of the next resistance level which is located at 96.50. A move above 96.50 will open the way to the test of the resistance at 96.70 which will be bullish for USD/CAD.

There are no important economic reports scheduled to be released in the U.S. and Canada today so foreign exchange market traders will focus on general market sentiment and dynamics of commodity markets.

WTI oil has recently made an attempt to settle below the $70 level as traders remained worried about the spread of Omicron. In case WTI oil manages to settle below the psychologically important $70 level, it will gain additional downside momentum which will be bearish for commodity-related currencies, including Canadian dollar.

Technical Analysis

usd cad december 17 2021

USD to CAD managed to settle back above 1.2800 and is trying to settle above the resistance at 1.2825. In case this attempt is successful, USD to CAD will get to the test of the next resistance level which is located at 1.2850.

If USD to CAD settles above the resistance at 1.2850, it will move towards the next resistance at 1.2890. A move above this level will push USD to CAD towards the resistance level at 1.2915.

On the support side, a move below 1.2825 will push USD to CAD back towards the support level at 1.2800. RSI is in the moderate territory, and there is plenty of room to gain downside momentum and continue the recent pullback.

If USD to CAD declines below 1.2800, it will move towards the next support level at 1.2780. A successful test of this level will push USD to CAD towards the support which is located near the recent lows at 1.2760.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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