Top Forex Trade Setups, Dec 26 – GBP/USD & USD/CAD Covered
Arslan Butt • 2 min read
On Wednesday, the US dollar was down against most of its peers over ongoing fundamentals – a series of negative factors, including intensified concerns over a partial US government shutdown and tension between the White House and the Federal Reserve.
The fundamentals’ side remains light as most financial institutes remain closed in the observance of Christmas holidays. Yet, the forex brokers are open, but will close trading services early today.
Major Forex Setups & Economic Events Today
GBP/USD – Peaking Out of Downward Channel
On the 4 -hour chart, the cable violated the psychological resistance level of $1.2700 to come out of the bearish channel. Looks like the pair is taking a bullish reversal. However, we can’t say much as the volatility remains low due to the holiday season.
Technically, the GBP/USD is likely to face a strong resistance near $1.2760, which is extended by 50 periods EMA. The pair is already above double top resistance $1.2685, which is now working as support.
Potential Economic Events to Impact
The US will release the latest report on home prices from S&P/Case-Shiller. It’s a leading indicator of consumer inflation – when corporations pay more for services, the higher costs are usually passed on to the consumer.
The data is due at 23:50 (GMT), and economists are expecting a flat rate of 1.3%.
Daily Technical Levels
Key Trading Level: 1.2636
GBP/USD – Trade Plan
Today, the idea is to stay bullish above 1.2680 to target 1.2780. While the selling is preferred below 1.2675 today.
USD/CAD – Bullish Channel in Play
The commodity currency remains weaker over falling oil prices due to the negative correlation between the Canadian dollar and crude oil. The WTI crude oil prices hit their lowest in more than a year on worries about oversupply and the outlook for energy demand.
At the moment, the USD/CAD is trading in a bullish channel which is supporting the pair near $1.3550 along with resistance at $1.3645. The 20 and 50 periods EMA are also supporting the bullish trend of the pair.
Daily Technical Levels
Key Trading Level: 1.3526
USD/CAD – Trade Plan
Today, the idea is to stay bullish above $1.3550 to target $1.3700. Fellas, the violation of $1.3550 can help us capture selling opportunities until $1.3495.
Good luck and stay tuned to FX Leaders for more updates and trading signals.