USD/CAD Daily Forecast – Canadian Dollar Gains Ground After Strong Employment ReportsUSD/CAD declined below the 20 EMA and is testing the next support level at 1.2550.
USD/CAD Video 09.04.21.
U.S. Dollar Is Losing Ground Against Canadian Dollar
USD/CAD is currently trying to settle below the support at 1.2550 while the U.S. dollar is moving higher against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 20 EMA at 92.35 but failed to develop sufficient upside momentum and declined towards the support at 92.15. If the U.S. Dollar Index settles below this level, it will get to the test of the next support at the 92 level which will be bearish for USD/CAD.
Today, Canada provided Employment Change report for March which indicated that the Canadian economy added 303,100 jobs compared to analyst consensus of 100,000. Unemployment Rate declined from 8.2% in February to 7.5% in March while analysts expected that it would decline to 8%. Stronger-than-expected employment reports provided material support to the Canadian dollar.
The yield of 10-year Treasuries has recently made an attempt to settle above 1.68% but lost momentum and declined closer to the 20 EMA at 1.63%. If the yield of 10-year Treasuries settles below the 20 EMA, it will continue its downisde move which will be bearish for the U.S. dollar.
USD to CAD is currently testing the support at 1.2550. In case this test is successful, USD to CAD will move towards the next support level at 1.2525.
A move below the support at 1.2525 will open the way to the test of the support which is located at the lows of the previous pullback at 1.2500. If USD to CAD manages to settle below this level, it will move towards the support at 1.2470.
On the upside, the nearest resistance level for USD to CAD is located at the 20 EMA at 1.2565. A successful test of this resistance level will push USD to CAD towards the next resistance at 1.2590. If USD to CAD gets above this level, it will head towards the resistance at the 50 EMA at 1.2605.
For a look at all of today’s economic events, check out our economic calendar.