FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks

Canadian Dollar Is Under Pressure Against U.S. Dollar

USD/CAD is currently trying to settle above the resistance at the 50 EMA at 1.2200 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance at the 50 EMA at 90.60. If the U.S. Dollar Index gets above this level, it will head towards the resistance at 90.90 which will be bullish for USD/CAD.

Advertisement
Know where USD/CAD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Today, foreign exchange market traders focused on the economic data from the U.S. Retail Sales declined by 1.3% month-over-month in May compared to analyst consensus which called for a decline of 0.8%. Industrial Production increased by 0.8% month-over-month in May compared to analyst consensus of 0.6%, while Manufacturing Production grew by 0.9%.

Producer Prices data exceeded expectations in both U.S. and Canada, but it looks that these reports had little impact on currency dynamics as traders remained focused on Fed Interest Rate Decision and the subsequent commentary which will be released on Wednesday.

Meanwhile, Canadian dollar found itself under pressure together with other commodity-related currencies due to the sell-off in commodity markets. Oil moved higher today, but the sell-off in commodities like copper was too strong, so traders ignored positive developments in oil markets.

Advertisement

Technical Analysis

USD to CAD managed to settle above the resistance at 1.2170 and is trying to settle above the next resistance level which is located at the 50 EMA at 1.2200.

In case USD to CAD gets above this level, it will head towards the next resistance at 1.2250. A successful test of the resistance at 1.2250 will push USD to CAD towards the next resistance at 1.2270. In case USD to CAD settles above 1.2270, it will head towards the resistance at 1.2300.

On the support side, the previous resistance level at 1.2170 will serve as the first support level for USD to CAD. A move below this level will push USD to CAD towards the next support at 1.2130. The 20 EMA is located in the nearby so USD to CAD will likely get material support near 1.2130.

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