On December 15, USD/CAD peaked at 1.2935 just near +2/8 Murray. From that level, the loonie retreated below the SMA of 21, which provides a negative signal for the next few days.
Investors were waiting for the monetary policy data from the Federal Reserve. Yesterday, this data was published and the market reacted by selling the US dollar and buying CAD. Now, it is located around 1.2768. It is likely to continue the downward trend for the next few days.
According to the 4-hour chart, the USD/CAD pair fixed below the 21 SMA located at 1.2817. In the event of a pullback to this area, it will be a good opportunity to sell. Conversely, a technical bounce around 8/8 Murray and around the 200 EMA (1.2771) will give us another opportunity to buy with targets at 1.2817.
The uptrend channel formed on October 28 remains intact. USD/CAD bounced above this channel several times and now it is acting as immediate support. In case it finds a technical correction, there will be a good opportunity to buy. It also may bounce above the uptrend channel or consolidates above the 200 EMA located at 1.2671.
Our trading plan for the next few hours is to sell according to the current trend below 1.2821. If there is a pullback towards the SMA of 21, it will be a good opportunity to sell. On the other hand, a bounce around 0/8 will be an opportunity to buy with targets at 1.2750 and 1.2817.
Support and Resistance Levels for December 16 - 17, 2021
Resistance (3) 1.2902
Resistance (2) 1.2863
Resistance (1) 1.2817
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Support (1) 1.2751
Support (2) 1.2722
Support (3) 1.2678
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A trading tip for USD/CAD on December 16 - 17, 2021
Sell below 1.2817(21 SMA) with take profit at 1.2751 and 1.2695 (8/8), stop loss above 1.2852.
