Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

USD/CAD Video 18.11.20.


U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD is currently trying to get below the support level at 1.3050 while the U.S. dollar is losing ground against a broad basket of currencies.

The American currency remains under pressure on the foreign exchange market, and the U.S. Dollar Index is moving towards the support at 92.10. A move below this level will push the U.S. Dollar Index towards the support at the yearly lows at 91.75 which will be bearish for USD/CAD.

Today, Canada reported that its Inflation Rate increased by 0.4% month-over-month in October compared to analyst consensus which called for growth of just 0.2%. On a year-over-year basis, Inflation Rate increased by 0.7%. Meanwhile, Core Inflation Rate increased by 1% year-over-year compared to analyst consensus of 0.9%.

In the U.S., Housing Starts increased by 4.9% month-over-month while Building Permits were flat compared to the previous month’s level. The U.S. housing market remains in a good shape, but it does not help the American currency which remains under pressure as the market expects years of low interest rates and additional money-printing from the Fed.

Technical Analysis

USD to CAD managed to get below the support at 1.3080 and is trying to settle below the next support at 1.3050. In case this attempt is successful, USD to CAD will gain additional downside momentum and head towards the next support level at 1.3000.

RSI remains in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge. If USD to CAD declines below the support at 1.3000, it will quickly get to the test of the next support level at 1.2985.

On the upside, the previous support level at 1.3080 will likely serve as the first resistance level for USD to CAD. In case USD to CAD gets above this level, it will move towards the resistance at 1.3100. A move above this resistance level will open the way to the test of the next resistance at the 20 EMA at 1.3120.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.