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Forex: USD/CAD eases off session highs towards 1.0019/23

The USD/CAD was confined to a trading range of 27 pips Friday (1.0000-1.0027), as an earlier attempt at a move below parity was stopped, leading to a jump in the exchange that established new highs during European trading. In these moments, the pair has eased slightly off its highs to 1.0019/23, still trading positively at +0.11%.

The European session has been devoid of any great newswires, however the G20 conference continues to be in focus. Later today in Canada, investors will learn of the Manufacturing Shipments (MoM) in December at 13:30 GMT, while the afternoon will be dominated by US data, including the Net TIC flows and the Reuters/Michigan Consumer Sentiment Index.

According to the ICN.com analyst team, the USD/CAD will meet resistive correction at the 1.0030, followed by 1.0050, and finally 1.0080. Conversely, supports lie below at 0.9980, onto 0.9965, and eventually 0.9940.

“The USD/CAD hovered around the psychological barrier at 1.0000 and the Linear Regression Indicators (LRI) crossed over negatively offering a bearish bias. Moreover, the stochastic is also trending lower despite oversold signals. Therefore, the pair might extend the bearish move since the it failed to breach 1.0085 levels previously.” warns the ICN.com analysts.

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