USD/CAD Daily Forecast – Resistance At 1.2500 Stays Strong

U.S. Dollar Gains Some Ground Against Canadian Dollar

USD/CAD made an attempt to settle above 1.2500 but lost momentum and pulled back closer to 1.2450 while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index received support at 92.15 and is trying to get to another test of the resistance at 92.40. If the U.S. Dollar Index manages to settle above this levle, it will move towards the resistance at 92.80 which will be bullish 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 focus on general market sentiment and dynamics of commodity markets.

WTI oil has recently made an attempt to settle below $73.50 but lost momentum and moved back above the $74 level which provided some support to Canadian dollar and other commodity-related currencies.

Technical Analysis

USD to CAD failed to settle above the resistance at 1.2500 and moved towards the support level at 1.2450. RSI is in the moderate territory, and there is plenty of roomo to gain downside momentum in case the right catalysts emerge.

If USD to CAD manages to settle below the support at 1.2450, it will head towards the next support level at 1.2420. A successful test of this level will open the way to the test of the next support which is located at the 20 EMA at 1.2385. In case USD to CAD declines below the 20 EMA at 1.2385, it will head towards the support at 1.2350.

On the upside, the nearest resistance level for USD to CAD is located at 1.2480. If USD to CAD manages to settle back above this level, it will move towards the next resistance at 1.2500. A successful test of the resistance at 1.2500 will push USD to CAD towards the next resistance level which is located near the highs of today’s trading session at 1.2520.

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