UC has been stuck in a downtrend for over a month now as the loonie continues to gain more demand over the USD. Good economic numbers on both sides is making it difficult for USD to prevail over CAD although Canada's economy is benefitting from the high demand in oil prices in which the USD is not.
The downtrend looks too strong for a turnaround in momentum, but that is not to say that we might still see a bounce on a significant level of support that the pair is currently on. Looking at technicals, the pair has potential although inflationary fears still runs through the US economy. So, short term, I think the pair has potential to move to the upside, but it will be difficult for the pair to further this momentum with the current situation in the US.
UC touching support around 1.23000 with the latest candle rejecting the lows with a long wick on the downside. If price can bounce from here, it may test resistance around 1.24200 which is now a strong level after the support zone was broken some days ago. A potential double bottom on this chart would be bullish, however, a break under this support could mean a move to 1.22486.
12/2/2021 US equities fell 5% from the highs after fears of a new coronavirus variant emerged and the first case was recorded in the US. SPX500 is up .10% on the day at the time of writing this. Our outlook The new omicron variant is definitely concerning most investors right now as the US will […]
Check out my previous G/U deep dive from early October here to see how we have progressed... Technical Outlook: Price has mainly been travelling in channels throughout the past year. As we saw the ascending channel formed post-Covid last year, price began retesting all previous key horizontal levels. Over the past couple of months, price has […]
11/30/2021 Gold price rose 0.59% on the day at the time of writing this in light of the uncertainty surrounding the Fed's policy towards the new variant and tapering of asset purchases. Our outlook I think gold will likely see some green today as the virus concerns can cause a slow in growth since the […]