USD/CAD Daily Forecast – Canadian Dollar Moves Lower As Demand For Riskier Currencies DeclinesUSD/CAD failed to settle below the support at 1.2280 and is trying to settle above the resistance level at 1.2310.
USD/CAD Video 04.05.21.
U.S. Dollar Gains Ground Against Canadian Dollar
USD/CAD is trying to settle above the resistance at 1.2310 while the U.S. Dollar is moving higher against a broad basket of currencies.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The U.S. Dollar Index is currently testing the resistance at the 20 EMA at 91.35. This resistance level has already been tested several times in recent trading sessions and proved its strength. In case the U.S. Dollar Index gets above this level, it will move towards the resistance at 91.50 which will be bullish for USD/CAD.
Today, the U.S. reported that Factory Orders increased by 1.1% month-over-month in March after declining by 0.5% in February (revised from -0.8%). Analysts expected that Factory Orders would increase by 1.3%.
Meanwhile, Canada reported that Building Permits grew by 5.7% month-over-month in March compared to analyst consensus which called for growth of 2%.
The reports had limited impact on USD/CAD as foreign exchange market traders focused on general market sentiment. Safe haven assets like U.S. dollar and U.S. Treasuries were in demand today while riskier currencies found themselves under pressure.
USD to CAD failed to settle below the support at 1.2280 and is trying to settle above the resistance level at 1.2310. USD to CAD has already managed to test the next resistance at 1.2350 but lost momentum and pulled back closer to 1.2310.
If USD to CAD manages to stay above 1.2310, it will have a chance to get to another test of the resistance at 1.2350. A move above this level will push USD to CAD towards the next resistance which is located at 1.2365.
In case USD to CAD gets above the resistance at 1.2365, it will head towards the resistance at 1.2385. A successful test of this level will open the way to the test of the resistance at 1.2400.
On the support side, a move below 1.2310 will push USD to CAD back towards the support at 1.2280. If USD to CAD settles below this level, it will gain additional downside momentum and head towards the next support at 1.2250.
For a look at all of today’s economic events, check out our economic calendar.