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USD / CAD consolidates weekly losses below 1.2770

  • USD / CAD operates in ranges on Thursday, in a day of limited liquidity conditions.
  • DXY recovers after hitting new lows in two years.

He USD / CAD closed in negative territory for the fourth day in a row on Wednesday and extended the decline to 1.2729 on Thursday, the lowest level since December 13. The cross then rebounded and is trading around 1.2750, unchanged for the day, validating a weekly drop of approximately one hundred pips.

The Dollar weakness remains the main factor for the USD / CAD retracement. Added to this is optimism in equity markets. In the group of those linked to commodities, the one that advanced the most on Thursday and during the week was the Australian dollar.

Considering that it is the last day of the year and with several markets already closed, the tours could continue in small ranges. In the US, the weekly report of requests for unemployment benefits will be published.

From a technical point of view, the dominant trend remains bearish in USD / CAD. Key support looms at 1.2700 / 1.2680, the level that contained declines in December. If it affirms below 1.2700, one would expect the downward pressures to return. In the opposite direction, resistances are seen at 1.2825 and then 1.2960. A daily close above 1.3030 would cast doubt on the downtrend.

Technical levels to take into account

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