USD/CAD Daily Forecast – Canadian Dollar Slides Against U.S. Dollar

U.S. Dollar Continues To Move Higher Against Canadian Dollar

USD/CAD is currently trying to settle above the resistance at 1.2650 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support level at 95.75 and is trying to develop additional downside momentum. In case this attempt is successful, it will move closer to the next support level at 95.40 which will be bearish for USD/CAD.

Today, foreign exchange market traders had a chance to take a look at Canada’s ADP Employment Change report for October. The report indicated that private businesses hired 65,800 workers compared to analyst forecast of 40,000.

Tomorrow, traders’ focus will shift to Retail Sales data from Canada. Analysts expect that Retail Sales declined by 1.7% month-over-month in September. On a year-over-year basis, Retail Sales are expected to grow by 6%.

Technical Analysis

USD to CAD managed to get above the resistance at 1.2625 and is trying to settle above the next resistance level at 1.2650. In case this attempt is successful, USD to CAD will move towards the next resistance at 1.2675. RSI is close to the overbought territory, but there is enough room to develop additional upside momentum in case the right catalysts emerge.

If USD to CAD manages to settle above the resistance at 1.2675, it will move towards the resistance level which is located at 1.2700. A move above this level will open the way to the test of the resistance at 1.2730. In case USD to CAD gets above this level, it will head towards the next resistance at 1.2760.

On the support side, the previous resistance at 1.2625 will serve as the first support level for USD to CAD. In case USD to CAD moves back below this level, it will head towards the next support at 1.2590. A successful test of this support level will push USD to CAD towards the support at 1.2550.

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