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Top Forex Trade Setups, Dec 26 – GBP/USD & USD/CAD Covered

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
Support    Resistance
1.2564        1.2703
1.2498       1.2774
1.2359       1.2912
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
Support    Resistance
1.3448       1.368
1.3295       1.3757
0.3064      1.3989
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.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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