USD/CAD Daily Forecast – Test Of Resistance At 1.2380

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD continues its attempts to settle above the resistance level at 1.2380 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is currently stuck in the range between the support at 93.50 and the resistance at 93.75. In case the U.S. Dollar Index manages to climb back above the resistance at 93.75, it will head towards the next resistance level at 94 which will be bullish for USD/CAD.

Today, U.S. reported that Manufacturing PMI declined from 60.7 in September to 59.2 in October compared to analyst consensus of 60.3. Services PMI increased from 54.9 to 58.2 while analysts expected that it would grow to 55.1.

In Canada, foreign exchange market traders had a chance to take a look at Retail Sales report for August. The report indicated the Retail Sales increased by 2.1% month-over-month compared to analyst consensus of 2%. On a year-over-year basis, Retail Sales grew by 8.4%.

WTI oil managed to rebound after yesterday’s pullback and made another attempt to get to the test of the $84 level. However, stronger oil failed to provide additional support to the Canadian dollar.

Technical Analysis

USD to CAD is currently trying to get above the resistance level at 1.2380. In case this attempt is successful, USD to CAD will move towards the next resistance level at 1.2400.

A move above 1.2400 will push USD to CAD towards the next reisstance at 1.2425. If USD to CAD gets above 1.2425, it will head towards the resistance level at 1.2450.

On the support side, the previous resistance at 1.2340 will serve as the first support level for USD to CAD. In case USD to CAD declines below 1.2340, it will move towards the next support at 1.2320. A successful test of the support at 1.2320 will open the way to the test of the next support level which is located at 1.2300.

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