USD/CAD Daily Forecast – Canadian Dollar Is Under Pressure At The Start Of The WeekUSD/CAD made an attempt to settle above 1.2800.
USD/CAD Video 11.01.21.
U.S. Dollar Moves Higher Against Canadian Dollar
USD/CAD gained strong upside momentum and is trying to settle above the resistance at 1.2800 while the U.S. dollar is gaining ground against a broad basket of currencies.
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The U.S. Dollar Index managed to get above the resistance at 90.50 and made an attempt to settle above the next resistance level at 90.70. If the U.S. Dollar Index gets above the resistance at 90.70, it will gain additional upside momentum and head towards the next resistance level at the 50 EMA near the 91 level which will be bullish for USD/CAD.
There are no important economic reports scheduled to be released today in the U.S. and Canada so foreign exchange market traders will focus on general market sentiment.
The U.S. Treasury yields continue to increase, providing additional support to the U.S. dollar. Meanwhile, oil and other commodities are under pressure amid rising coronavirus cases in China which is bearish for commodity-related currencies including Canadian dollar. The combination of rising Treasury yields and a pullback in the commodity space has provided material support to USD/CAD during today’s trading session.
USD to CAD gained strong upside momentum and tested the resistance at 1.2835 before pulling back below 1.2800. In case USD to CAD manages to settle above 1.2800, it will get to another test of the resistance at 1.2835.
RSI remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge. If USD to CAD gets above the resistance at 1.2835, it will move towards the next resistance level which is located at the 50 EMA at 1.2860.
On the support side, USD to CAD will likely get material support between the 20 EMA at 1.2765 and the previous resistance level at 1.2775. If USD to CAD manages to settle below the 20 EMA, it will get to the test of the next support level at 1.2750. A successful test of the support at 1.2750 will push USD to CAD towards the support level at 1.2720.
For a look at all of today’s economic events, check out our economic calendar.