USD/CAD Daily Forecast – Canadian Dollar Moves Higher As WTI Oil Gets Back Above $75

U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD is currently trying to settle below the support level at 1.2780 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is still stuck between the support at 96 and the resistance at 96.25. If the U.S. Dollar Index manages to move above the resistance at 96.25, it will gain upside momentum and head towards the resistance at 96.50 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 and the dynamics of commodity markets.

WTI oil has recently managed to get above the psychologically important $75 level and is trying to settle above $75.50. In case this attempt is successful, it will move towards the resistance at the $77 level which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD has recently managed to get below the support level at 1.2800 and is trying to settle below the next support which is located at 1.2780. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

If USD to CAD declines below the support at 1.2780, it will head towards the next support level at 1.2760. A successful test of the support at 1.2760 will push USD to CAD towards the support at 1.2730. In case USD to CAD gets below 1.2730, it will move towards the next support which is located at the 50 EMA near 1.2715.

On the upside, USD to CAD needs to get back above 1.2800 to have a chance to develop upside momentum in the near term. The next resistance level for USD to CAD is located at 1.2825.

A move above 1.2825 will push USD to CAD towards the resistance at 1.2850. If USD to CAD moves above this level, it will head towards the next resistance at 1.2890.

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