USD/CAD Daily Forecast – Canadian Dollar Stays Range-Bound

USD/CAD Video 09.03.21.

Canadian Dollar Remains Flat Against U.S. Dollar

USD/CAD is currently trying to get back above the resistance at the 20 EMA at 1.2665 after an unsuccessful attempt to settle below the support at 1.2590 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has managed to settle below the support at 92.25 and is trying to settle below the next support level at 92. Treasury yields have pulled back from recent highs which was bearish for the American currency. If the U.S. Dollar Index declines below the support at 92, it will head towards the next support at 91.75 which will be bearish for USD/CAD.

There are no important economic reports scheduled to be released in the U.S. and Canada today so foreign exchange market traders will remain focused on U.S. government debt markets and the dynamics of commodity markets.

The current pullback in commodity markets served as a bearish catalyst for Canadian dollar so USD/CAD failed to gain downside momentum on a day when the U.S. dollar was under pressure against a broad basket of currencies.

Tomorrow, traders will focus on Bank of Canada’s Interest Rate Decision. The interest rate is expected to stay unchanged, but Bank’s comments may have an impact on USD/CAD.

Technical Analysis

USD to CAD did not manage to gain downside momentum and returned to the resistance level at 1.2665. In case USD to CAD manages to settle above this level, it will move towards the next resistance at 1.2700. The 50 EMA is in the nearby, and this resistance level is set to be a significant obstacle on the way up for USD/CAD.

If USD to CAD settles above the resistance at 1.2700, it will head towards the next resistance level which is located at 1.2750.

On the support side, the nearest support for USD to CAD is located at 1.2625. If USD to CAD declines below this level, it will move towards the next support at 1.2590 which has again proved its strength during the current trading session.

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