Daily Price Outlook

- The USD/CAD pair shows a bearish trend, currently trading at 1.35585 with a 0.12% decrease, facing immediate resistance at 1.3561.

- Technical indicators like RSI at 41 and MACD below its signal line suggest a potential downward momentum.

- Key support at 1.3570 and resistance levels up to 1.3701 are pivotal for determining the pair's short-term direction.

As of December 12, the USD/CAD currency pair is exhibiting a minor downward trend in the Forex market, currently trading at 1.35585, a decrease of 0.12%. Analyzing the 4-hour chart provides a nuanced view of its short-term movements and potential pivot points.

In terms of key price levels, the USD/CAD pair faces immediate resistance at 1.3561. Overcoming this level could lead the pair to test further resistance at 1.3644 and potentially at 1.3701. Conversely, support levels are observed at 1.3781, 1.3504, and 1.3421. These levels will be critical in determining whether the pair can sustain its current momentum or if a reversal is imminent.

From a technical perspective, the Relative Strength Index (RSI) stands at 41, indicating a bearish sentiment in the market. This level suggests that the pair is neither in the overbought nor the oversold territory but leans towards a bearish inclination. The Moving Average Convergence Divergence (MACD) shows a value of -0.0004 with a signal line at 0.00014. The MACD line's position below the signal line hints at potential downward momentum for the USD/CAD pair, reinforcing the bearish sentiment indicated by the RSI.

The 50-Day Exponential Moving Average (EMA) for the pair is currently at 1.3576. Given that the pair's price is hovering below the 50 EMA, it signifies a short-term bearish trend. Furthermore, the chart reveals a downward channel keeping the USD/CAD pair bearish, especially below the 1.3570 support zone. A consistent close below this level could trigger further selling interest in the Canadian Dollar.

In conclusion, the overall trend for the USD/CAD pair appears bearish, particularly if it maintains below the critical 1.3570 level.

USD/CAD Price Chart – Source: Tradingview
USD/CAD Price Chart – Source: Tradingview

USD/CAD - Trade Idea 

Entry Price – Sell Below 1.3570

Take Profit – 1.3510

Stop Loss – 1.3621

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$606/ -$505

Profit & Loss Per Mini Lot = +$60/ -$50



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