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USDCAD Market Update

12/30/2022 11:32 AM

The Canadian currency continues its unstable dynamics against the US dollar and is likely to remain at current levels near 1.3546 due to the lack of important macroeconomic publications until the end of the year.

Despite the rather poor state of the national economy, leading analysts do not see a serious slowdown in the housing market. Thus, according to the Canadian Real Estate Association (CREA), sales in 2022 will amount to 535.545K houses, which is 20% less than last year, while their value may increase by 0.2%. Experts from Royal LePage, on the contrary, expect prices to fall by 1.0% by the end of 2023, and RE/MAX, a global organization that unites more than 100.0K real estate agents worldwide, predicts a correction to –3.3% YoY.

At the end of the year, the American currency held around 103.700 points in the USD Index. The data from the national Ministry of Labor report showed the consolidation of initial jobless claims at 225.0K against 216.0K a week earlier, which did not support the quotes. Thus, the total claims amounted to 1.710M, which exceeds 1.669M people last week.

Since no important macroeconomic publications are scheduled today, we can assume that the USD/CAD pair will remain at current levels.

The daily chart shows the price rising within the local ascending corridor with dynamic boundaries 1.3750–1.3520.

The range of fluctuations of the EMA on the Alligator indicator remains upward, having narrowed almost completely, and the AO oscillator histogram is forming new downward bars, approaching the transition level.

Support levels: 1.3482, 1.3315. | Resistance levels: 1.3609, 1.3749.

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