Two Trades To Watch: USD/CAD, Gold

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USD / CAD looks at BoC exchange rate decision

USD / CAD goes higher after falling for 2 straight sessions. The pair fell 1.5% earlier in the week on the back of a stronger CAD, as oil prices rose 8%.

Oil is lowering today, pulling the loon lower. The focus is now on the BoC.

The BoC expects to keep interest rates unchanged at 0.25%. However, the central bank expects to acknowledge the continued economic recovery in Canada after consistently strong data.

Where next for USD / CAD?

A double upper inverse pattern is visible at 1.2850. USD / CAD saw a decline at 1.2850 and fell below its 20 sma and is testing support around 1.2650 12-day low.

The bearish cross on the MACD keeps sellers optimistic about further losses. Support is seen at 1.26 round number before the 50 sma at 1.2540.

On the downside, buyers could look for a move above the 20 sma at 1.2678 ahead of a 1.27 round number.

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Gold is testing strong resistance to JOLTS jobs

Gold goes higher for a second straight session thanks to a softer US dollar.

Omicron continues to be the driving force in the market with early data suggesting that Pfizer’s puncture offers at least some protection against the new strain.

The economic calendar is quiet today with only U.S. job data from JOLT, which is expected to show continued strain on the U.S. labor market. A strong report could prompt bets on an earlier move by the Fed.

However. Friday’s inflation data will be the main show this week.

Where next for gold prices?

Gold extends its rebound from the success of 1761 earlier this month.

It seems to be a golden cross pattern, with the 50 sma crossing over the 200 sma keeping buyers optimistic about further gains. The RSI is faltering on the brink of bullish territory.

However strong resistance can be seen at 1791, the confluence of the 50 and the 200 sma. A daily closing here is necessary to test the 1800-round number and the maximum of November 30, 1809.

Support can be seen at 1772 yesterday low before 1766.

Source

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