USD/CAD Daily Forecast – Canadian Dollar Moves Higher As Oil RalliesOPEC+ extended current production cuts and provided major support to commodity-related currencies.
USD/CAD Video 04.03.21.
U.S. Dollar Is Under Pressure Against Canadian Dollar
USD/CAD is once again testing the support level at 1.2590 while the U.S. dollar is gaining some ground against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle above the resistance at 91.10 but failed to develop sufficient upside momentum and declined towards the 91 level. The nearest support level for the U.S. Dollar Index is located at 90.90. If the U.S. Dollar Index manages to settle below this level, it will head towards the 50 EMA at 90.70 which will be bearish for USD/CAD.
Today, the U.S. reported that Initial Jobless Claims increased from 736,000 (revised from 730,000) to 745,000 compared to analyst consensus of 750,000. Continuing Jobless Claims declined from 4.42 million to 4.3 million, in line with the analyst consensus. U.S. employment reports were mostly in line with analyst expectations and did not have much impact on the U.S. dollar.
U.S. Treasury yields pulled back a bit but remain close to recent highs which may provide additional support to the American currency.
Meanwhile, Canadian dollar got a boost as WTI oil rallied above the $64 level on reports that OPEC+ will keep its current production cuts intact. Saudi Arabia will keep its voluntary production cuts of 1 million barrels per day (bpd) for the month of April, which is a major surprise for the market.
USD to CAD continues its attempts to settle below the nearest support level at 1.2590. If USD to CAD manages to settle below this level, it will head towards the next support at 1.2550.
In case USD to CAD declines below the support at 1.2550, it will continue its downside move and head towards the next support level at 1.2525.
On the upside, the nearest resistance level for USD to CAD is located at 1.2625. If USD to CAD gets above this level, it will move towards the 20 EMA at 1.2660. A move above the 20 EMA will push USD to CAD towards the next resistance level at 1.2700.
For a look at all of today’s economic events, check out our economic calendar.