The almighty U.S. dollar is extending Tuesday’s losses from a yearly high price point. The USD/CAD currency exchange rate is falling towards 1.29 as price action is now challenging 1.13. This Forex market has seen two days of losses but remains within a bearish chart pattern. This is the rising wedge seen on the above four chart.
Forex sentiment is risk off as traders are also watching headlines regarding the new Omicron Covid-19 variant. A study from the United Kingdom suggests the Omicron variant could be just as serious as the Delta Covid-19 strain.
Canada will be publishing monthly housing numbers. The United Kingdom will be releasing the final look at the third quarter gross domestic product. The United State is also releasing minor monthly housing data. The Consumer Board (CB) will publish December’s U.S. consumer confidence.
The world’s biggest economy is also scheduled to release weekly inventory numbers. The European Union has no economic data scheduled for publication today.
Daily U.S. Dollar Technical Analysis (USD/CAD)
The MACD histogram is looking bearish and the relative strength index is falling out of the overbought area. This could put more selling pressure on the U.S. dollar sending the USD/CAD currency exchange rate for more possible losses.
Immediate technical support for the U.S. dollar lines up at 1.29, however a daily close below the downside barrier of the rising wedge near 1.2840 could open the door for sellers to challenge the November low price level of 1.2490.
With that said, the two hundred (200) hour simple moving average lines up near a five week old rising trend line near 1.2690. The next downside barrier lines up at 1.2640.
On the upside, while below the upside barrier of the falling wedge chart patter, near 1.2975, meaningful gains will be hard to come by. A daily close above 1.2975 opens the door for the key psychological level of 1.30 before the November 2020 high price point at 1.3172 comes into focus.