USD/CAD Daily Forecast – A Move Out Of The Range

USD/CAD Video 11.03.21.

Canadian Dollar Moves Higher Against U.S. Dollar

USD/CAD is currently trying to get to the test of the support at 1.2550 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index settled below the support at 91.75 and is trying to settle below the next support level at 91.50. In case this attempt is successful, it will move towards the support at 91.30 which will be bearish for USD/CAD.

Today, U.S. reported that Initial Jobless Claims declined from 754,000 to 712,000 while Continuing Jobless Claims decreased from 4.34 million to 4.14 million. Both reports were better than analyst expectations.

U.S. Treasury yields, which were moving lower ahead of the release of U.S. employment reports, gained some upside momentum and are currently moving higher. Interestingly, this move failed to provide any support to the American currency.

Meanwhile, Canadian dollar got additional support from strong commodity markets. Copper is rebounding while WTI oil is trying to settle above the $66 level which is good for commodity-related currencies. If commodity markets continue to move higher, Canadian dollar will get additional support.

Technical Analysis

USD to CAD has managed to get out of the previous trading range between the support at 1.2590 and the resistance at 1.2700 and is moving lower. This is an important development for Canadian dollar bulls as USD to CAD has a good chance to develop downside momentum.

Currently, USD to CAD is trying to get to the test of the support level at 1.2550. In case USD to CAD manages to settle below this level, it will head towards the next support at 1.2525.

A move below the support at 1.2525 will open the way to the test of the support at 1.2500. In case USD to CAD gets below this level, it will head towards the support at yearly lows at 1.2470.

On the upside, a move above 1.2590 will push USD to CAD towards the resistance at 1.2625. If USD to CAD manages to settle above this level, it will head towards the next resistance at the 20 EMA at 1.2650.

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