USDCAD Technical Analysis – December-19-2023
In today’s comprehensive USDCAD technical analysis, we will first scrutinize the price action of the currency pair, and then meticulously delve into the fundamental analysis pertaining to the currency pair.
USDCAD Technical Analysis
FxNews – The currency pair is currently near the 1.3375 support level, a key point as seen on the daily chart. This level has often influenced the pair’s price, making it a central focus in our USDCAD technical analysis. Observing the technical indicators, we find that USDCAD is oversold. Consequently, short selling this pair at the present price is not advisable. Should the 1.3375 level hold, we might see a price increase, potentially reaching the 23.6% Fibonacci retracement level. This resistance zone is also reinforced by the upper boundary of the bearish flag.
However, even if the bears manage to keep the price below 1.3375, selling the pair remains a risky strategy. We are monitoring the pair for potential consolidation and recovery from its recent losses.
Oil Surge Boosts TSX Performance
Reuters – On Monday, the S&P/TSX Composite index rose by 0.4%, surpassing the 20,620 mark, thanks to strong performance from top energy companies in Toronto. This increase was fueled by attacks on oil tankers in the Red Sea and a drop in Russian oil exports, which boosted oil prices. Shares in oil-related businesses saw an uptick as a result, with Canadian Natural Resources leading the pack with a 1.7% increase, followed by gains of 1.6% and 0.8% in Suncor Energy and Cenovus Energy, respectively.
The financial sector also experienced a slight boost, averaging a 0.4% rise. Investors remained watchful, looking forward to Tuesday’s inflation data for hints about future monetary policy shifts, especially in light of recent assertive statements from BoC Governor Tiff Macklem.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.