USD/CAD Daily Forecast – Attempt To Settle Below 1.2965

USD/CAD Video 09.11.20.

Canadian Dollar Continues To Gain Ground Against U.S. Dollar

USD/CAD has managed to get below the support level at 1.3000 and made an attempt to settle below the next support at 1.2965 as the oil price rally provided significant support to commodity-related currencies.

Meanwhile, the U.S. Dollar Index failed to settle above the support at 92.10, gained significant upside momentum and managed to get above the resistance at 92.50. Currently, the U.S. Dollar Index is trying to get to the test of the 93 level. If the U.S. Dollar Index manages to get above 93, it will gain additional upside momentum and head towards the 20 EMA at 93.25 which will be bullish for USD/CAD.

No important economic reports were set to be released in the U.S. and Canada today so USD/CAD traders were focused on the latest developments on the commodity front and on general market sentiment.

Markets are very optimistic today due to positive vaccine news. Interestingly, vaccine news provided support to the American currency which was under pressure at the start of the day.

Most likely, the reason for the recent upside move of the U.S. Dollar Index is the huge jump in U.S. government bond yields which made the U.S. dollar more attractive compared to other currencies.

Today, this catalyst was offset by the major oil price rally so USD/CAD was under pressure, but it remains to be seen whether Canadian dollar will be able to hold on to its recent gains in the upcoming trading sessions.

Technical Analysis

 

USD to CAD declined below the support at 1.3000 and gained strong downside momentum. However, it did not manage to settle below the support at 1.2965.

If USD to CAD settles below this support level, it will get to the test of the next support at 1.2915.

On the upside, the previous support level at 1.3000 will likely serve as the first resistance level for USD to CAD.

If USD to CAD manages to get above this level, it will gain upside momentum and head towards the next resistance level which is located at 1.3050.

A move above this level will open the way to the test of the next resistance at 1.3080.

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