USDCAD is sideways above 1.43 and the 75-period SMA, meaning the primary trend is bullish. AO signals divergence and the Stochastic is about to flip above 80.
A Dip below the immediate resistance at 1.435 can trigger a consolidation phase, targeting 1.429.
USDCAD Technical Analysis – 27-December-2024
The U.S. dollar trades bullish against the Canadian currency at approximately 1.44 in today’s trading session. However, the uptrend from 1.412 eased after the prices reached the 1.445 high. As of this writing, the currency pair trades sideways above the 23.6% Fibonacci support level.
Furthermore, the Awesome Oscillator is above zero with green bars, meaning the bull market should prevail. But Stochastic records how 80, hinting at the Greenback being overpriced, at least in the short term.
Overall, the technical indicators suggest that while the primary trend is bullish, but the USD/CAD trend has the potential to consolidate near the lower support levels.
USDCAD is Sideways Above 1.43: Market Awaits Breakout
The immediate support is at 1.435. From a technical perspective, the downtick in momentum from 1.446 could extend to lower support levels if bears (sellers) push USD/CAD below 1.435.
If this scenario unfolds, the next bearish target could be 1.429, followed by 1.424.
- USDCAD is Sideways Above 1.43: Market Awaits Breakout
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The Bullish Scenario
Please note that the USD/CAD trend outlook remains bullish as long as the prices are above the 75-period SMA or the 38.2% Fibonacci. That said, joining the bull market at the currency price is not advisable because the Awesome Oscillator signals divergence, and the Stochastic is in the overbought territory.
Therefore, we suggest retail traders and investors wait patiently for the currency pair to consolidate near the key support levels (1.429 and 1.424). These supply price areas can offer a decent bid to join the bull run, so monitoring them is advisable.
USDCAD Support and Resistance Levels – 27-December-2024
Traders and investors should closely monitor the USD/CAD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
| USDCAD Support and Resistance Levels – 27-December-2024 | |||
|---|---|---|---|
| Support | 1.435 | 1.429 | 1.424 |
| Resistance | 1.446 | 1.454 | 1.467 |