Chart of the day - USDCAD (08.12.2021)

Today traders will be watching the BoC meeting, looking for some clues for the next steps of the monetary authority after better-than-expected employment and GDP data. From a technical point of view, USDCAD pair broke below the lower limit of the 1:1 structure (red rectangle), which, according to the Overbalance methodology, may indicate a sentiment shift towards bearish. Currently, the sell-off has slowed down at the horizontal support level at 1.2635 and  test of the resistance at 1.2712 cannot be ruled out. On the other hand, should break below the aforementioned support occur, the sell-off may deepen towards 1.2500, where another key demand support is located.

USDCAD, H4 interval. Source: xStation5