USD/CAD Price Forecast December 22, 2017, Technical Analysis

The US dollar initially went sideways against the Canadian dollar during the trading session on Thursday, but then collapsed below the 1.28 level as the Final GDP figures in the United States came out at 3.2%, lower than the expected 3.3% level. Simultaneously, the Canadian Court Retail Sales figures came out at 0.8% month over month, well above the expected 0.4% for the announcement. Beyond that, the Canadian CPI figures month over month came out at 0.3%, better than the anticipated 0.2%.

As a result, we obviously saw the market fall significantly, and as a record this we are testing the 1.2750 region. I believe there is a significant amount of support just below, and I do think that eventually the buyers come back but I also recognize that the short-term volatility will probably pick up. We also have a certain amount of problems in the Canadian economy, not to mention the volatility in the oil markets. I think this will continue to be a very noisy currency pair, but it’s not until we break down below the 1.25 level that I would be concerned about the General uptrend that we have seen. During this time a year, it’s a serious problem with volume that will come into play, so I think some of this move is probably a bit exaggerated. With that being the case, it’s difficult to change the overall attitude of market participants, although the buyers are going to be very cautious.

Economic Calendar