USD/CAD is pressuring the static support of 1.2782, a valid breakdown announced a deeper drop. Unfortunately, the NFP report has disappointed and has punished the USD. Also, the Federal Reserve could add more stimulus measures on December 16, that's why the greenback goes down.
Today, the BOC will publish the Overnight Rate which is expected to remain steady at 0.25%. Still, the BOC Rate Statement could shake the markets, so you should be careful around this high impact event.
USD/CAD Trading In The Red!
The price has tested and retested the broken lower median line (LML) of the descending pitchfork and now is pressuring 1.2782 static support. A new lower low, bearish closure under 1.2768 could activate more declines.
The bias remains bearish, USD/CAD could drop further as long it stays under the black downtrend line. The downside scenario could be invalidated by a valid breakout above the downtrend line.
- USD/CAD Trading Tips
USD/CAD is bearish, so a new lower low could indicate downside continuation on the H4 chart. The S1 (1.2700) and the S2 (1.2617) are seen as downside targets, obstacles.
As I've told you earlier, the BOC could change the sentiment later today. A dovish BOC could bring a throwback. A major bullish engulfing or a pin bar could lead to a temporary rebound.
