USD/CAD Daily Forecast – Canadian Dollar Remains Under Pressure

USD/CAD Video 30.03.21.

U.S. Dollar Continues To Gain Ground Against Canadian Dollar

USD/CAD continues to test the resistance at the 50 EMA at 1.2620 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained strong upside momentum and is currently trying to settle above the resistance at 93.20. In case this attempt is successful, the U.S. Dollar Index will get to the test of the next resistance level at 93.40 which will be bullish for USD/CAD.

Today, the U.S. dollar got strong support on the foreign exchange market as Treasury yields moved to new highs. The yield of 10-year Treasuries tested the 1.77% level before pulling back below 1.75%. If the sell-off in the U.S. government bond markets continues and yields move higher, the U.S. dollar may get more support.

Canadian dollar also faced some resistance as commodity markets were under pressure, which is bearish for commodity-related currencies. WTI oil made an attempt to settle below the psychologically important $60 level but failed to develop sufficient downside momentum and rebounded to the $61 level. In case WTI oil declines below the support at the $60 level, Canadian dollar will find itself under more pressure.

Technical Analysis

USD to CAD is currently trying to settle above the resistance at the 50 EMA at 1.2620. In case this attempt is successful, it will move towards the next resistance at 1.2665.

A move above the resistance at 1.2665 will open the way to the test of the next resistance level which is located at 1.2700. In case USD to CAD gets above 1.2700, it will head towards the resistance at 1.2740.

On the support side, a move below the 50 EMA at 1.2620 will push USD to CAD towards the support at 1.2590. If USD to CAD declines below this level, it will head towards the next support level which is located at the 20 EMA at 1.2570. In case USD to CAD gets below the 20 EMA, it will move towards the support at 1.2550.

For a look at all of today’s economic events, check out our economic calendar.