USD/CAD Daily Forecast – Canadian Dollar Is Stuck In A Tight Range

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Updated: May 24, 2021, 16:56 UTC

USD/CAD has recently made another attempt to settle above 1.2080.

U.S. Dollar Tries To Gain Ground Against Canadian Dollar At The Start Of The Week

USD/CAD is trying to settle above the resistance at 1.2080 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle below the support at 89.75 but failed to develop sufficient downside momentum and rebounded closer to the resistance at the 90 level. If the U.S. Dollar Index settles above 90, it will head towards the resistance at 90.30 which will be bullish for USD/CAD.

There are no important economic reports scheduled to be released today in U.S. and Canada so traders are focused on general market sentiment. While the U.S. dollar is under some pressure against a broad basket of currencies today, trading remains calm, and it looks that USD/CAD will need additional downside catalysts to get to new lows.

It should be noted that Treasury yields continue to move lower as Fed members managed to calm bond markets, but it remains to be seen whether foreign exchange market traders will stay calm when they see the next round of inflation data from the U.S. which is scheduled to be released on June 10.

Technical Analysis

USD to CAD continues its attempts to settle above the resistance at 1.2080. If USD to CAD settles above this level, it will get to the test of the next resistance at 1.2100.

A successful test of the resistance at 1.2100 will push USD to CAD towards the resistance at 1.2130. If USD to CAD gets above this level, it will move towards the 20 EMA at 1.2155. A move above the 20 EMA will open the way to the test of the resistance at 1.2170.

On the support side, the nearest support level for USD to CAD is located at 1.2065. A move below the support at 1.2065 will push USD to CAD towards the support at 1.2040. In case USD to CAD declines below this level, it will move towards the next support at 1.2000.

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

About the Author

Vladimir Zernovauthor

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.