FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
100,988,153Confirmed
2,171,072Deaths
73,005,404Recovered
Fetching Location Data…
Advertisement
Advertisement
Vladimir Zernov
USD/CAD

USD/CAD Video 28.10.20.

Advertisement

U.S. Dollar Gains Ground Against Canadian Dollar Amid Increased Demand For Safe Haven Assets

USD/CAD is trying to settle above 1.3300 as the U.S. dollar is gaining ground against a broad basket of currencies while oil is under serious pressure due to fears about the second wave of lockdowns in Europe.

Advertisement
Know where USD/CAD is headed? Take advantage now with 

75% of retail CFD investors lose money

The U.S. Dollar Index has settled above the 20 EMA at 93.30 and made an attempt to get above the 50 EMA at 93.55 as the American currency benefited from the increased demand for safe haven assets amid global market sell-off.

If the U.S. Dollar Index moves above the resistance at the 50 EMA, it will gain additional upside momentum which will be bullish for USD/CAD.

Today, Bank of Canada left the interest rate unchanged at 0.25%, in line with the analyst consensus. Interestingly, the Bank of Canada decided to recalibrate its quantitative easing program to shift its purchases towards longer-term bonds.

The Bank stated that such bonds had more influence on borrowing rates for businesses and households. By buying longer-term bonds, Bank of Canada hopes to increase their price and, therefore, decrease their yield.

In addition to its quantitative easing program, the central bank promised to keep interest rates low until it achieved the 2% inflation target. According to the Bank’s projections, this would not happen until into 2023, so traders and investors should prepare for several years of very low interest rates.

Technical Analysis

USD to CAD has managed to get above 1.3300 and tested the resistance at 1.3330. In case USD to CAD gets above 1.3330, it will head towards the next major resistance level at 1.3420. There are no important levels between 1.3330 and 1.3420 so this move may be fast.

A successful test of the resistance at 1.3420 will push USD to CAD towards the next resistance level at 1.3450.

On the support side, the nearest support level for USD to CAD is located at 1.3260. If USD to CAD declines below this level, it will head towards the next support at the 50 EMA at 1.3225. A move below the 50 EMA will push USD to CAD towards the support at 1.3200.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US