USDCAD: Bulls are making mind blowing counter attack.

Overview: USD/CAD rises to 1.2750, up 0.05% intraday, during early Tuesday. The loonie pair tracks the US dollar’s gains, as well as recent declines in energy prices, while portraying a three-day winning streak near a one-week high. Behind the US dollar gains are the chatters over likely delay in the US President Joe Biden’s $1.4 trillion fiscal stimuli. The expectations for an extra lag gained momentum after the Senate Majority Leader Chuck Schumer said, “Will try to pass stimulus in a month, month-and-a-half.”Technical Analysis: From the technical point of view, A clear break of the five-week-old falling trend line, at 1.2750 now, becomes necessary to direct USD/CAD bulls towards 50-day SMA near 1.2815. Given the lack of major data/events on the calendar ahead of Wednesday’s FOMC and Thursday’s US Q4 GDP, USD/CAD traders may keep extending the prevalent trend with a less pace. However, any surprise news concerning energy and/or US stimulus shouldn’t be ignored. On the risk-positive side were the coronavirus (COVID-19) vaccine updates from Moderna and AstraZeneca suggesting the cure to the variants from the UK and South Africa. Also trying to improve the mood could be an Israeli report signaling a notable improvement in the health conditions after two jabs of the vaccine. Against this backdrop, S&P 500 Futures drop 0.40% while the US 10-year Treasury yields look for clear signals near 1.04% by press time. Further, stocks in Asia-Pacific also trade mixed amid uncertainty over the much-awaited market relief from America. we can say that an uptrend line is lying on the chart and the bulls are getting demand pressure from that level. The odds are in favor of the bulls. The RSI is also above the 50 levels which is favoring the bulls and MACD also traveling above the zero levels as providing strength to the bulls. On the 4 hourly charts, we can see bullish marabuzo in the market which is showing bullish sentiments in the market.  The support of the market is 1.6820 followed by 1.6750 and resistance is 1.7000 followed by 1.7050.Trade Idea: The traders are advised to go for buy 1.2750 and target will be 1.2800, 1.2850 and stop loss will be 1.2670.


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