The Canadian dollar is under pressure against the US dollar

The Canadian dollar remains is under pressure against the US dollar. The main pressure is exerted by the widespread strengthening of the US currency, as well as the continued decline in oil prices. Also, additional pressure on the Canadian currency is provided by data on Canada’s trade balance.

• According to published data, in December the trade balance amounted to -3.126 billion, against the November value of -2.71 billion.

Technical analysis: During today’s trades, the pair USD/CAD managed to gain a foothold above the level of 38.2 Fibonacci on H4, which indicates the continuation of the upward correction.

The main recommendations: In the event that the price of the instrument will be able to gain a foothold above the level of 1.2578, it is worth considering purchases from this level with a potential of 1.2650. Sales should be considered in the case of consolidating the pair below the level of 1.2500, with a further decline to the level of 1.2410.

Fig. USD/CAD. Current price – $ 1.2549

Alexander Sivtsov