Significant Support - 1.2750
USDCAD declined drastically despite the hawkish US-fed monetary policy. The central bank has increased the pace of bond tapering from $15 bn dollars to $30 bn dollars. Most fed members voted for three rate hikes in 2022. Canada's consumer price m/m rose 0.20% in Nov and yearly inflation climbed to 4.7%. USDCAD hits a multi-week high of around 1.29373 and currently trading around 1.27960.
Technicals:
USDCAD is holding below short-term (21 EMA), medium-term (55 EMA), and below long-term (100 and 200) in the hourly chart.
ADX- Bearish trend with strength above 25 levels.
CCI (50) and woodies CCI below zero line.
Resistance to be watched- 1.2850, 1.2900, and 1.2950.
Support- 1.2780,1.2700,1.2640.
It is good to sell on rallies around 1.2818-20 with SL around 1.2855 for a TP of 1.2700.
