FXStreet: bulls attack the 1.37 level on USDCAD

20 December 2022 60
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Source: FXStreet

Author: Anil Panchal

Article: Original Article

Publication date: Tuesday, December 20, 2022 


USDCAD clings to moderate growth near the 1.3700 level because the US dollar recovers from the intraday losses. The growth of the pair also could be related to falling prices of the main export goods of Canada — WTI oil.   


The last recovery of the US dollar may be based on the economic concerns surrounding China and also the whole world. The World Bank’s forecasts on China and hawkish actions of central banks aimed to curb inflation might be behind these steps, especially when a recession is about to appear.


A wave of negativity towards the risk can help the USDCAD buyers ahead of the release of October retail sales data in Canada, -0.3% is expected against 0.5% a month earlier. On the other hand, building permits in the US and housing commissioning for November may also determine the pair's short-term movements.   


A daily closing above 1.3700, including multiple tops market during the two last weeks, becomes necessary for bulls on USDCAD to aim for a November high near 1.3810. Otherwise, the rollback to 50-DMA support on the 1.3557 level can happen. 


Forecast: growth of USDCAD

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