The U.S. dollar and the Canadian dollar are lately oscillating within an upside formation between the range of 1.3075 and 1.3424 respectively.

The bulls are now exerting pressures in their attempts of taking control over the price, and holding the pair close to the 1.3424 level.

Probable Scenario

In the scenario where the USDCAD breaks above the 1.3424 area, the price could escalate as high as 1.3637.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 40 zone.

usdcad-dec-19-2016

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.3293 area, the pair could decline as low as 1.3160.

Today’s Major Announcements

  • The Markit PMI Composite (Dec) and the Markit Services PMI (Dec) announcements will likely have a medium impact on the U.S. dollar
  • There are no any major releases that could have an impact on the Canadian dollar

Synopsis

·         Probable trend (Bullish): 1.3424

·         Bullish take profit target: 1.3637

·         Stop loss target: 1.3293

·         Alternative trend (Bearish): 1.3293

·         Bearish take profit target: 1.3160