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USD/CAD Daily Forecast – Another Test Of Support At 1.3000

By:
Vladimir Zernov
Published: Nov 25, 2020, 17:21 UTC

USD/CAD is trying to settle below the nearest support level at 1.3000.

USD/CAD Daily Forecast – Another Test Of Support At 1.3000

In this article:

USD/CAD Video 25.11.20.

Canadian Dollar Attempts To Gain More Ground Against U.S. Dollar

USD/CAD is testing the support at 1.3000 while the U.S. dollar continues to lose ground against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at 92.10 and made an attempt to settle below the 92 level. The next support for the U.S. Dollar Index is located at the yearly lows at 91.75. If the U.S. Dollar Index moves towards this level, USD/CAD will find itself under additional pressure.

Today, foreign exchange market traders had to digest multiple economic reports from the U.S. The biggest news is that Initial Jobless Claims increased to 778,000 compared to analyst consensus of 730,000. Meanwhile, Continuing Jobless Claims declined to 6.1 million but remained above the analyst forecast.

Personal Income declined by 0.7% while Personal Spending managed to grow by 0.5%. It will be hard for Personal Spending to keep growing if Personal Income declines so the U.S. economy clearly needs another stimulus package.

New Home Sales declined by 0.3% month-over-month in October. However, it should be noted that the previous report was revised from -3.5% to 0.1% so New Home Sales were mostly flat in recent months.

It remains to be seen whether the U.S. dollar will be able to gain additional downside momentum ahead of the Thanksgiving holiday as trading volumes will gradually decrease. However, the American currency remains in an uncomfortable position and looks ready to test yearly lows which will be bearish for USD/CAD.

Technical Analysis

usd cad november 25 2020

USD to CAD continues its attempts to settle below the nearest support level at 1.3000. The next support level for USD to CAD is located at 1.2985.

If USD to CAD declines below the support at 1.2985, it will gain additional downside momentum and move towards the next support at November lows at 1.2930.

On the upside, the nearest resistance level for USD to CAD is located at 1.3050. A move above this level will open the way to the test of the 20 EMA at 1.3090. If USD to CAD gets above the 20 EMA, it will head towards the next resistance level at 1.3145.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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