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USD/CAD Daily Forecast – Attempt To Get Above 1.3330 Yielded No Results

By:
Vladimir Zernov
Published: Oct 7, 2020, 16:19 UTC

USD/CAD tried to get above the resistance at 1.3330 but failed to develop upside momentum and declined below 1.3300.

USD/CAD

In this article:

USD/CAD Video 07.10.20.

U.S. Dollar Failed To Develop Additional Momentum Against Canadian Dollar

USD/CAD failed to settle above the nearest resistance level at 1.3330 and returned to the support level at the 50 EMA at 1.3280 as the U.S. dollar lost ground against a broad basket of currencies while oil found itself under pressure after the release of crude inventory report.

The U.S. Dollar Index did not manage to settle above the resistance at the 50 EMA at 93.85 and declined below the support level at the 20 EMA at 92.65. In case the U.S. Dollar Index moves towards the recent lows at 93.35, USD/CAD will find itself under additional pressure.

Today, the markets were closely watching the stimulus story. The U.S. President Donald Trump stated that negotiations with Democrats would be stopped but later indicated that he was willing to sign a downsized stimulus bill.

The U.S. stock market praised the news, and S&P 500 is currently gaining more than 1%. The reaction of currency markets was more careful although the safe-haven dollar lost some ground against a broad basket of currencies.

Technical Analysis

usd cad october 7 2020

USD to CAD has just made an attempt to get above the nearest resistance level at 1.3330. This attempt yielded no results as USD to CAD failed to develop sufficient momentum and returned back to the 50 EMA level at 1.3280.

At this point, the 50 EMA remains the nearest support level for USD to CAD. In case USD to CAD manages to settle below this level, it will head towards the next support at 1.3235.

During the previous trading session, USD to CAD tried to get to the test of the support at 1.3235 but quickly rebounded back to the 50 EMA. In case USD to CAD settles below 1.3235, it will get to the test of the major support level at 1.3200.

On the upside, the nearest resistance for USD to CAD is still located at 1.3330. If USD to CAD manages to settle above this level, it will gain upside momentum and head towards the major resistance level at 1.3420.

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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