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USD/CAD Daily Forecast – Canadian Dollar Is Losing Ground At The Start Of The Week

By:
Vladimir Zernov
Published: Jan 10, 2022, 17:13 UTC

USD/CAD settled back above 1.2650 and is testing the next resistance level at 1.2680.

USD/CAD

In this article:

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD is currently trying to settle above the resistance at 1.2680 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently failed to settle above the resistance at 96.25 and pulled back towards the 96 level. In case the U.S. Dollar Index declines below this level, it will move towards the support at 95.75 which will be bearish for USD/CAD.

There are no important economic reports scheduled to be released in the U.S. and Canada today so foreign exchange market traders will focus on general market sentiment and the dynamics of commodity markets.

Markets are focused on rising Treasury yields today, which provides support to safe-haven assets like U.S. dollar. The yield of 10-year Treasuries is currently trying to settle above the 1.80% level. In case this attempt is successful, it will move towards 1.85% which will be bullish for the American currency.

Meanwhile, WTI oil moved towards the $78 level amid a broad pullback in riskier assets. In case WTI oil manages to settle below the $78 level, it will head towards the support at the $77 level which will be bearish for commodity-related currencies, including Canadian dollar.

Technical Analysis

usd cad january 10 2022

USD to CAD is testing the resistance level at 1.2680. If USD to CAD manages to settle above this level, it will move towards the resistance at the 50 EMA at 1.2710.

In case USD to CAD settles above the 50 EMA, it will move towards the next resistance level which is located at the 20 EMA at 1.2730. A successful test of the resistance at the 20 EMA will push USD to CAD towards the next resistance level at 1.2760.

On the support side, the nearest support for USD to CAD is located at 1.2650. If USD to CAD moves back below this level, it will head towards the support at 1.2625. A move below this support level will open the way to the test of the support at 1.2590.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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