USD/CAD Daily Forecast – Attempt To Settle Below Support At 1.3050USD/CAD remains under serious pressure as the U.S. dollar continues to lose ground against a broad basket of currencies.
USD/CAD Video 31.08.20.
Canadian Dollar Continues To Gain Ground Against The U.S. Dollar
USD/CAD is testing the support at 1.3050 as the U.S. dollar continues to lose ground against a broad basket of currencies.
The U.S. Dollar Index made an attempt to settle below the 92 level once it was able to get below the nearest support at 92.10. If this attempt is successful, the U.S. Dollar Index will gain more downside momentum which will be bearish for USD/CAD.
WTI oil is mixed today so the Canadian dollar does not get additional support but traders still have to monitor whether oil will be able to get above the nearest resistance level at $43.50 as such a move will be bearish for USD/CAD.
Canada has recently released Building Permits report for July which indicated that Building Permits declined by 3% compared to analyst consensus which called for growth of 5.5%.
Meanwhile, producer prices increased by 0.7% month-over-month, fully in line with the analyst consensus.
USD/CAD trading dynamics in the first half of this week will depend on whether the U.S. Dollar Index manages to continue its downside move. In the second half of the week, the focus will shift to important employment reports which are due to be released in the U.S. and Canada.
Friday is set to be an especially eventful day since U.S. will provide Non Farm Payrolls and Unemployment Rate reports while Canada will release Employment Change and Unemployment Rate data for August.
USD to CAD is currently trying to settle below the nearest support level at 1.3050. RSI is not in the extremely oversold territory so there is more room to develop downside momentum.
In case USD to CAD manages to settle below 1.3050, it will head towards the next support level near 1.3000. A move below 1.3000 will open the way to the next support level at 1.2960.
On the upside, USD to CAD will likely face some resistance near 1.3080. If USD to CAD moves above this level, it will head towards the major resistance level at 1.3135.
For a look at all of today’s economic events, check out our economic calendar.