USD/CAD Daily Forecast – Canadian Dollar Continues To Pull Back

USD/CAD Video 11.11.20.

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD continues to rebound as the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is trying to settle above the nearest resistance level at the 20 EMA at 93.15. If this attempt is successful, the U.S. Dollar Index will move towards the next resistance at the 50 EMA at 93.45 which will be bullish for USD/CAD.

Today, WTI crude oil continued to gain ground as crude inventories declined by 5.1 million barrels but this move failed to provide support to commodity-related currencies.

U.S. and Canada did not release any material economic reports today so traders will have to wait until tomorrow to get another round of important data.

Tomorrow, the U.S will provide Inflation Rate and Core Inflation Rate reports for October. Inflation Rate is expected to increase by 0.1% month-over-month. On a year-over-year basis, Inflation Rate is projected to grow by 1.3%. Meanwhile, analyst expect that Core Inflation Rate would grow by 1.8% year-over-year.

In addition to inflation data, traders will have a chance to evaluate the latest employment reports. Initial Jobless Claims are expected to decline from 751,000 to 735,000 while Continuing Jobless Claims are projected to drop from 7.29 million to 6.9 million.

Technical Analysis

USD to CAD managed to get above the resistance at 1.3050 and continues its rebound. The next resistance level is located at 1.3080, and USD to CAD has almost managed to get to the test of this level during today’s trading session.

In case USD to CAD gets above 1.3080, it will quickly get to the test of the significant resistance level at 1.3100. A move above this level will push USD to CAD towards the next resistance at the 20 EMA at 1.3135.

On the support side, the previous resistance level at 1.3050 will likely serve as the first support level for USD to CAD. In case USD to CAD manages to settle below this level, it will move towards the support at 1.3000. A move below 1.3000 will open the way to the test of the next support level at 1.2965.

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