Two trades to watch: USD/CAD, Gold
Fiona Cincotta December 8, 2021 3:09 AM
USD/CAD looks to BoC rate decision. Gold tests strong resistance ahead of JOLTS job openings.
USD/CAD looks to BoC rate decision
USD/CAD is heading higher after falling for 2 straight sessions. The pair tumbled 1.5% at the start of the week on the back of a stronger CAD as oil prices rallied 8%.
Oil is edging lower today, pulling the loonie lower. Attention now turns to the BoC.
The BoC is expected to keep interest rates unchanged at 0,25%. However, the central bank is expected to acknowledge the continued economic recovery in Canada after consistently strong data.Read more the BoC
Where next for USD/CAD?
A double top reversal pattern can be seen at 1.2850. USD/CAD saw rejection at 1.2850 and has fallen away below its 20 sma and is testing support around 1.2650 a 12 day low.
The bearish cross over on the MACD is keeping sellers optimistic of further losses. Support can be seen at 1.26 round number ahead of the 50 sma at 1.2540.
On the flip side, buyers could look for a move above the 20 sma at 1.2678 ahead of 1.27 round number.
Gold tests strong resistance ahead of JOLTS job openings
Gold is heading higher for a second straight session thanks to a softer US dollar.
Omicron is very much still the driving force in the market with early data suggesting that Pfizer’s jab offers at least some protection against the new strain.
The economic calendar is quiet today with just US JOLT job openings data, which is expected to show a continued tightening of the US labor market. A strong report could prompt bets of a sooner move by the Fed.
However. Friday’s inflation data will be the main show this week.Learn more about trading Gold
Where next for Gold prices?
Gold is extending its rebound from 1761 hit at the start of the month.
There appears to be a gold cross pattern, with the 50 sma crossing above the 200 sma keeping buyers optimistic of further gains. The RSI is teetering 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 close above here is needed to test 1800 round number and November 30 high of 1809.
Support can be seen at 1772 yesterday’s low ahead of 1766 .
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