Forex Trading: USDCAD Technical Analysis – December 16, 2019

It’s not a nice day for the US Dollar (USD) as it started badly this morning, marking a bearish candle on the graph against the Canadian Dollar (CAD) with a price drop below 1,3200. The decrease in price is the result of major economic announcements.  The technical bias may also remain bearish, as a lower low was printed on the graph during the last move.

USDCAD: Technical Analysis

The USDCAD has been quoted at 1.3115 currently. The price will face multiple levels of resistance ahead with the first being the major horizontal resistance close to 1.3143, it could push the price back to the downside. Going forward, the price will reach a trend line resistance of about 1,3309, which can also make it difficult for the price to move, ahead of 1,3352, September 03, 2019, as shown in the graph below.

Talking about the support levels, the price is likely to receive strong support around 1.3055, its a trend line support level which may help the price to sustain around the current level and prevent it from falling further. The price may then be subjected to a second support level around 1.3000, the psychological number ahead of the major horizontal support which stands near 1.2989, as shown in the graph above.

United States’ Non-Farm Payrolls Release

From a fundamental standpoint, The “Retail Sales Control Group,” released by the U.S. Census Bureau on Friday, December 13, 2019, dropped from 0.3 percent to 0.1 percent, suggesting a fall in the statistic reflecting the bearish environment for the U.S. the retail sales lead toward the overall sector sales used to compile PCE figures for most products.

Trade Idea

Therefore, since the technical bias is likely to move towards a bullish direction, trading the USDCAD will work well for both short- and long-term positions.