The chart on the weekly time frame shows that the USD/CAD pair tested the Fibonacci level 38.2% at 1.27000. Last week’s candlestick tells us that the pair made a retest to 1.3 million and retreated again to 1.27000. For now, the long-term bearish scenario is until we see a break in the declining trend line. On the upper side, we have the resistance of moving averages from MA20 to MA200. The pullback is always possible for another retest at 1.30000.
On the daily time frame, we see a falling channel from April this year, and for now, the USD/CAD pair is moving within that channel, testing both channel lines both up and down. From moving averages now, the pair has made a break above MA20 and is waiting for the next MA50. If we look at the pullback, we can expect it until the previous retest at 1.29500. The bearish scenario is still very likely in the next short term.
On the four-hour time frame, we see that the USD/CAD pair made a break outside the falling channel by retesting the zone around 1.3000, while on the underside, it found support at 1.27000. It supports moving averages MA50 and MA100, but probably only in the short term to MA200, which coincides with the retest zone around 1.29500-1.30000.
By the end of the year, we probably won’t see any drastic shift on the USD/CAD pair. The US dollar returned to some sales pressure amid progress in additional US fiscal stimulus measures. The House of Representatives voted to increase COVID-19 aid to qualified Americans on Monday from $ 600 to $ 2,000. Investors remain concerned about discovering a new, more widespread variant of the coronavirus, which could strengthen the dollar.
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