USD/CAD Daily Forecast – Canadian Dollar Failed To Gain More Upside Momentum

USD/CAD Video 06.10.20.

Canadian Dollar Is Flat Against The U.S. Dollar Despite Strong Oil

USD/CAD is trading near the 50 EMA at 1.3280 as the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index did not gain additional downside momentum after yesterday’s downside move. In absence of material economic reports, the dynamics of the American currency depend on general market sentiment.

Currently, traders are undecided about the next move of the world markets, and the U.S. Dollar Index is stuck under 93.50 after testing the support near 93.35.

Oil continued to rally today but did not manage to provide additional support to the Canadian dollar. As a result, USD/CAD did not manage to gain any momentum and continued to trade close to the 50 EMA.

Tomorrow, traders will focus on FOMC Minutes from the last Fed meeting which may provide additional insight on Fed’s thoughts about the current economic situation.

In addition, several Fed officials are due to speak after the release of FOMC Minutes so the market will likely have some news to digest.

Technical Analysis

USD to CAD made an attempt to get to the test of the support at 1.3235 but failed to gain sufficient downside momentum and returned back to the 50 EMA level.

The 50 EMA will likely serve as the nearest resistance level for USD to CAD. The 20 EMA is in the nearby, and this resistance level is set to be strong.

If USD to CAD manages to settle above the resistance at 1.3280, it will gain upside momentum and move towards the next resistance level at 1.3330.

A move above 1.3330 will signal that USD to CAD is ready to get to another test of the major resistance level at 1.3420.

On the support side, USD to CAD needs to test the support at 1.3235 to have a chance to continue its current downside move.

In case this test is successful, USD to CAD will develop additional downside momentum and head towards the major support level at 1.3200.

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