The Canadian dollar is seen recovering ground against its American counterpart from near weekly tops, as the BOC Governor Poloz’ hawkish comments continue to boost the local currency. Get more on the 18 December USDCAD Technical Forecast.
18 December, GKFX – Having failed yet another upside attempt near 1.29 handle, the USD/CAD pair turns back lower, now extending its retreat towards the midpoint of the last.
- DXY on the defensive ahead of the US tax reform vote.
- BOC’s Poloz comments, Oil prices underpin CAD.
- A big week ahead: Canada CPI and US GDP eyed.
USD/CAD: 1.2900 – a tough nut to crack
The Canadian dollar is seen recovering ground against its American counterpart from near weekly tops, as the BOC Governor Poloz’ hawkish comments continue to boost the local currency. In an interview with BOC Governor Poloz published on the weekend in the Globe & Mail, the Canadian central bank chief said that his word of caution on the markets doesn’t mean he is going to sit back and not go for the next rate hike.
Additionally, last week’s remarks from Poloz, citing that he was ‘increasingly confident’ that the economy would need less monetary stimulus over time, also remains CAD-supportive.
However, the renewed uptick in the CAD is likely to remain short-lived, as the US dollar is expected to resume Friday’s recovery on the back of the US tax reform optimism, tracking the bullish tone seen around the US Treasury yields across the curve.
Calendar-wise, there is nothing of note, except for the Canadian foreign securities purchases, as attention turns towards the Canadian CPI and retail sales release ahead of the US final GDP and durable goods data.
18 December USDCAD Technical Forecast
The immediate support for the pair aligns at 1.2848/40 (200, 10 & 5-DMA) ahead of 1.2804 (20-DMA) and 1.2776 (50-DMA). On the upside, resistances could be seen at 1.2892/93 (key resistances), 1.2915 (Oct 31 high) and 1.2950 (psychological levels).
This article “ 18 December USDCAD Technical Forecast ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.