USD/CAD is rising for the second day in a row and continues to bounce from the low of 1.2774. The pair is now above the SMA 21 located at 1.2799. It is supported by the strong US dollar, and the current rise is a part of the technical sequence of the uptrend channel.
According to the daily chart, the trend is still upward and is expected to reach the target of 1.3062 (7/8) in the next few weeks. As long as it remains above 1.2780, the loonie is likely to continue its bullish sequence towards the psychological level of 1.3000.
In case of a technical correction, the pair is expected to fall to the level of 1.2622 and thus could still maintain the uptrend. Below the 200 EMA on daily charts and below 1.2600 a decline could occur and return the pair to the price levels of October 20, around 1.2330.
In the short term, we'd better watch the key level of 1.2799, a technical bounce and consolidation above this zone will be an opportunity to continue buying to as far as 7/8 Murray at 1.3026.
On the contrary, if the USD/CAD falls below the SMA 21 and below 1.2780, it will be an opportunity to sell since the uptrend channel will be broken and there could be a correction to 1.2622 (200 EMA).
The Eagle indicator is giving a positive signal, and the USD/CAD pair is likely to continue trading above 1.28 in the coming days. Any pullback as long as it remains above the 200 EMA (1.2622) will be an opportunity to buy again.
Support and Resistance Levels for December 29 - 30, 2021
Resistance (3) 1.2890
Resistance (2) 1.2860
Resistance (1) 1.2837
----------------------------
Support (1) 1.2807
Support (2) 1.2754
Support (3) 1.2731
***********************************************************
A trading tip for USD/CAD on December 29 - 30, 2021
Buy in case of a rebound off at 1.2799 (21 SMA) with take profit at 1.2939 and 1.3062 (7/8), stop loss below 1.2765.
