- The loonie gets stronger on the last day of the year.
- USD / CAD aims to end 2021 at the same level it was 12 months ago.
- Low volume workday and few operations.
The USD / CAD is falling for the third day in a row, hitting 1.2714, the lowest level since December 13. The pair remains close to the low with a dominant bearish tone.
The last bearish leg of the USD / CAD gained momentum with the break of the support at 1.2770, which has now become a relevant resistance. Technical indicators mostly point to the downside. A rally above 1.2830 could change the short-term bias.
The decline in the pair in recent days is behind a rise in the price of oil and in the equity markets, that play in favor of the loonie against the dollar. On Friday in particular, the loonie is being one of the best performing currencies among the G10.
In the last day of 2021 there is no economic data to highlight, nor will it be published. In turn, the volume of operations is low. This implies that traditional correlations could be weakened in the next few hours.
The USD / CAD close for the year is practically unchanged. It started 2021 in the same zone where it is trading at the time of writing, at 1.2720 / 25. The weekly chart shows an upward bias, although the pair is on track for its second consecutive weekly decline. At 1.2635 is the 20-week average, which could reveal if there is a rebound and resumption to the upside, or if it comes lower.
Technical levels
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