USD/CAD Daily Forecast – Canadian Dollar Continues To Gain Ground
USD/CAD Video 11.08.20.
Today, Russia has announced that it had approved the world’s first COVID-19 vaccine, and this news boosted risk-on sentiment in the global markets despite the widespread criticism of the vaccine due to its rushed development.
The U.S. Dollar Index has failed to settle above 93.50 but did not gain significant downside momentum. In my opinion, the U.S. Dollar Index maintains its chances to continue the rebound and get above the 20 EMA at 94.10. Such a move would be bullish for USD/CAD.
The U.S. has reported that producer prices increased by 0.6% month-over-month in July, indicating that demand was rebounding. Tomorrow, the U.S. will report Inflation Rate for July. Analysts expect that July’s Inflation Rate was 0.8% on a year-over-year basis, while Core Inflation Rate was 1.1% on a year-over-year basis.
USD to CAD managed to get below the nearest support level at 1.3330 and tries to gain more upside momentum. RSI is at moderate levels so there is plenty of room to develop more momentum. In addition, USD to CAD remains in a downside trend, which increases chances for the test of recent lows at 1.3235.
The nearest support level for USD to CAD has emerged at 1.3270. In case USD to CAD manages to settle below this level, it will head towards the next support level at the recent lows at 1.3235.
On the upside, the previous support at 1.3330 will likely serve as the first important resistance level for USD to CAD. A move above this level will open the way to the test of the next resistance level at the 20 EMA at 1.3390.
In case USD to CAD manages to settle above the 20 EMA, it will have a chance to get to the test of the major resistance level at 1.3500, although it may also face resistance near 1.3450.
For a look at all of today’s economic events, check out our economic calendar.