Strengths of USD / CAD:
- USD / CAD trend is clearly weaker after long term support breaks
- Can rebound, test the level of failure then go back down
- It will take a lot of work to make the outlook bullish
The USD / CAD has been one of the most persistent currency trends, falling last month almost without interruption. Only pauses marked the recent slide. We may see a reprieve for those with a bullish outlook, but at the moment it looks like it will only be a temporary event.
The week ending December 4th brought a strong weekly closing candle below the 2009 support and the 2017 trendline / channel line. This put the USD / CAD in a position to continue lower and stay in. position to trade as low as 2017. low at 12061 in this race.
But it will probably take a while and before it even continues to fall from here there may be a rebound that will see the area just around 13,000 tested before the sell starts again. This may be a bit ambitious given the one-way street the USD / CAD has taken, but as long as it stays below 13,000 the outlook is neutral at best.
Looking lower, the next level of price support comes around 12,500, then 12,249, and finally the big level down to 12061. As 2021 approaches, this could be a trend that continues to be the one of the strongest, or at least the most persistent, on the developed market. currencies.
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USD / CAD weekly chart (big broken support, look at 2018 levels on more selling)
USD / CAD daily chart (a rebound may develop)
USD / CAD Charts by TradingView
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— Written by Paul Robinson, Market Analyst
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