USD/CAD Daily Forecast – Canadian Dollar Moves Higher As Oil Rebounds

USD/CAD Video 24.03.21.

U.S. Dollar Pulls Back

USD/CAD is currently trying to settle below the support at 1.2500 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues to test the resistance at 92.50. If the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 92.70 which will be bullish for USD/CAD.

Today, U.S. provided flash readings of Manufacturing PMI and Services PMI reports for March. Manufacturing PMI increased from 58.6 in February to 59 in March compared to analyst consensus of 59.3. Meanwhile, Services PMI grew from 59.8 to 60, in line with the analyst consensus.

U.S. has also reported that Durable Goods Orders declined by 1.1% month-over-month in February after growing by 3.5% in January. The report missed analyst estimates which called for growth of 0.8%.

Canadian dollar received material support from foreign exchange market traders as WTI oil returned back above the $60 level. A huge container ship blocked Suez Canal which is important for oil trade. However, current problems look temporary so the U.S. dollar may soon have a chance to gain more ground against Canadian currency.

Technical Analysis

USD to CAD did not manage to settle above the resistance at 1.2590 and declined towards the support level at the 50 EMA at 1.2550. Currently, USD to CAD is trying to settle below this level.

In case this attempt is successful, USD to CAD will head towards the next support at 1.2525. A move below the support at 1.2525 will open the way to the test of the support at 1.2500. If USD to CAD declines below the support at 1.2500, it will head towards the next support level at 1.2470.

On the upside, the nearest resistance level for USD to CAD is located at 1.2590. a successful test of this level will push USD to CAD towards the next resistance at the 50 EMA at 1.2625. In case USD to CAD gets above this level, it will head towards the resistance at 1.2665.

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