USD/CAD Daily Forecast – Another Test Of Support At 1.2780

U.S. Dollar Is Losing Some Ground Against Canadian Dollar

USD/CAD is currently trying to settle below the support at 1.2780 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle back above the 96 level. If this attempt is successful, it will get to another test of the resistance at 96.25 which will be bullish for USD/CAD.

U.S. has recently released Initial Jobless Claims report which indicated that 198,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 208,000. Continuing Jobless Claims decreased from 1.86 million to 1.72 million compared to analyst consensus of 1.87 million.

Foreign exchange market traders also monitored the developments in commodity markets. WTI oil moved higher after reports indicated that OPEC+ failed to meet its self-imposed quotas, which means that some countries are not able to increase production as fast as permitted by the OPEC+ deal. This is bullish for oil and oil-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD declined below 1.2800 and is testing the support level at 1.2780. If USD to CAD settles below 1.2780, it will head towards the next support at 1.2760. RSI is in the moderate territory, and there is enough room to develop downside momentum in case the right catalysts emerge.

A move below the support level at 1.2760 will open the way to the test of the next support which is located near the 50 EMA at 1.2730. If USD to CAD manages to settle below 1.2730, it will head towards the support at 1.2710.

On the upside, USD to CAD needs to settle back above the 20 EMA at 1.2800 to have a chance to develop upside momentum in the near term. If USD to CAD settles above the 20 EMA, it will move towards the next resistance level at 1.2825. A successful test of this level will push USD to CAD towards the next resistance at 1.2850.

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