USD/CAD Forecast December 17-21 – Struggles Continue For CAD

*All times are GMT

USD/CAD Technical Analysis

Dollar/CAD headed higher at the start of the week, hitting 1.3416, as it punched past 1.3580, mentioned last week. The pair retracted in mid-week, but the Canadian dollar again weakened, ending the week around the 1.34 level.

Technical lines from top to bottom:

We begin with resistance at 1.3645. This line served in a support role when the pair traded higher in early 2017. 1.3560 capped $/CAD in May 2017. 1.3445 was the peak in early December.

1.3385 was the high point seen in May and towers above. 1.3350 was a stepping stone on the way and on the way down around the same time.

1.3320 was the high point in late November. Lower, 1.3265 was the high point in mid-November. 1.3225 played a role in capping USD/CAD back in September.

1.3175 was a swing low in late November and it is followed by 1.3125 which was also a low point, earlier in the month.

1.2970 is our final support level. It was a trough in late-October.

I remain bullish on USD/CAD

The U.S-China trade war remains in full force, with the threat of further U.S tariffs in March continuing to dampen investors’ appetite for risky assets such as the Canadian dollar. Another soft GDP release this week could send the currency lower.

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