USD/CAD Daily Forecast – Canadian Dollar Loses Ground On Weak OilUSD/CAD failed to settle below the nearest support at 1.3355 and tries to get above the resistance at 1.3400.
USD/CAD Video 29.09.20.
The U.S. Dollar Index has managed to get below 94.00 and is testing the nearest support level at the 50 EMA at 93.90. If the U.S. Dollar Index moves below the 50 EMA, it will head towards the next material support level at the 20 EMA at 93.60 which will be bearish for USD/CAD.
Today, the main problem for the Canadian dollar is the oil price weakness which puts pressure on commodity-related currencies. Without this factor, Canadian dollar would have had good chances to gain ground against the U.S. dollar.
Canada has recently reported that producer prices increased by 0.3% month-over-month while raw materials prices increased by 3.2% month-over-month. On a year-over-year basis, producer prices and raw materials prices remain under pressure, and there are no material signs of rising inflation.
USD/CAD traders will certainly pay attention to the upcoming U.S. presidential debate between Donald Trump and Joe Biden. The debate may have an impact on general U.S. dollar strength and may lead to volatility in USD/CAD.
USD to CAD has recently tested the support level at 1.3355 and returned back to the nearest resistance at 1.3400 as weak oil put pressure on Canadian dollar.
The resistance at 1.3400 remains a serious obstacle on the way up for USD to CAD. In case USD to CAD manages to settle above this resistance level, it will head towards the next resistance at the recent highs at 1.3420.
The 20 EMA is about to cross the 50 EMA to the upside, suggesting the continuation of the upside trend, so USD to CAD could soon try to break above the resistance at 1.3420.
A move above the resistance at 1.3420 will open the way to the test of the next resistance level at 1.3450.
On the support side, USD to CAD needs to move below the support at 1.3355 to have a chance to test the material support level at 1.3330.
If USD to CAD managest to settle below the support at 1.3330, it will gain additional downside momentum and move towards the 50 EMA at 1.3280.
For a look at all of today’s economic events, check out our economic calendar.