USD/CAD Daily Forecast – Test Of Support At 1.2570

USD/CAD Video 31.03.21.

U.S. Dollar Is Under Pressure Against Canadian Dollar

USD/CAD is currently trying to settle below the support at the 20 EMA at 1.2570 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at 93.20 and tested the next support level at 93. If the U.S. Dollar Index manages to settle below the 93 level, it will gain additional downside momentum which will be bearish for USD/CAD.

Today, the U.S. provided ADP Employment Change report which indicated that private businesses added 517,000 jobs in March compared to analyst consensus of 550,000. Pending Home Sales report showed that Pending Home Sales declined by 10.6% month-over-month in February while analysts expected that they would decline by 2.6%.

Tomorrow, foreign exchange market traders will focus on additional job market reports from the U.S. The Initial Jobless Claims report is expected to show that 680,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.87 million to 3.78 million.

Traders will also have a chance to take a look at the final reading of Manufacturing PMI report for March which is projected to show that Manufacturing PMI increased from 58.6 in February to 59 in March.

Technical Analysis

USD to CAD is currently testing the nearest support level which is located at the 20 EMA at 1.2570. If this test is successful, USD to CAD will get to another test of the support at 1.2550.

If USD to CAD declines below the support at 1.2550, it will move towards the next support level at 1.2525. A move below this level will push USD to CAD towards the support at 1.2500.

On the upside, the nearest resistance level for USD to CAD is located at 1.2590. If USD to CAD gets above this level, it will head towards the next resistance at the 50 EMA at 1.2620. A successful test of this resistance level will open the way to the test of the resistance at 1.2665.

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