Vladimir Zernov
Add to Bookmarks

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.

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.

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.


Technical Analysis

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.

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