FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks
USD/CAD

U.S. Dollar Is Under Strong Pressure Against Canadian Dollar

USD/CAD is currently trying to settle below the support at 1.2560 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index declined below the 93 level and is trying to settle below the support at 92.80. In case this attempt is successful, the U.S. Dollar Index will move towards the support at 92.40 which will be bearish for USD/CAD.

Advertisement
Know where USD/CAD is headed? Take advantage now with 

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.

Today, foreign exchange market traders focused on the developments in commodity markets. WTI oil managed to gain strong upside momentum and returned to the $70 level which provided significant support to commodity-related currencies including Canadian dollar.

Meanwhile, the yield of 10-year Treasuries has moved from 1.20% to 1.29% as bond traders sold U.S. government bonds. This move indicates that demand for safe-haven assets is decreasing, which is bearish for the American currency that has recently enjoyed strong support due to fears about the spread of the Delta variant of coronavirus.

Advertisement

Technical Analysis

USD to CAD gained strong downside momentum and is trying to settle below the support at 1.2560. RSI is in the moderate territory, and there is enough room to gain additional downside momentum in case the right catalysts emerge.

In case USD to CAD manages to settle below the support at 1.2560, it will move towards the next support level at 1.2540. A successful test of this level will push USD to CAD towards the next support at 1.2520. The 20 EMA is in the nearby so USD to CAD may get strong support near this level. If USD to CAD declines below the support at 1.2520, it will head towards the support level at 1.2500.

On the upside, the nearest resistance level for USD to CAD is located at 1.2590. A successful test of this level will open the way to the test of the resistance at 1.2625. In case USD to CAD gets above 1.2625, it will head towards the next resistance at 1.2650.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker