The Canadian Dollar Is Testing Key Levels Ahead GDP Data

• 1 Dec 2017

USD/CAD

The USD/CAD pair has hit a market top at the 1.288 price level with a bearish candle forming in today’s trading session. A flattening out in the volume and a the beginning of a descent on RSI may signal a trend reversal. The previous bullish run may not last. MACD has descended from a strongly bullish position and flattened just above the zero line. A full break of the 1.288 price level is required to signal the trend reversal.

Impact event: ISM Manufacturing PMI data will be released at 17:00 GMT+2 and will impact all USD pairs.

CAD/CHF

The CAD/CHF has had seven consecutive bearish candles in the previous trading sessions. However, a trend reversal may be imminent. A bullish candle after the break of the 0.763 price level (which denotes a recent low for the pair) has been initiated some buying activity. To support the possible reversal; RSI has bounced and recovered from the 30 support level. The bearish move on MACD has begun to level out and volume has remained steady in the last three trading sessions.

GBP/CAD

The GBP/CAD pair has been strongly bullish for the last couple of trading sessions. The move has also resulted in a number of breaks of the upper Bollinger band. RSI has broken the 70 overbought level and is curving round to initiate a downward move. A bearish candle to start today’s session may suggest that buyers have lost steam at the most recent market top. A break of the 70 overbought line to the downside may signal a trend reversal.

AUD/CAD

Despite a break of the 20- period EMA in previous sessions, the bullish move appears to be short-lived. Strong selling pressure in yesterday’s session has resulted in a bearish candle to start today’s session. RSI has a sharp downward trajectory suggesting that momentum has shifted to sellers. The pair may begin to approach the previous support level at the 0.969 price level.