FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks

U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD is currently trying to settle back below the support at 1.2130 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the 50 EMA at 90.60 and moved below 90.50. The nearest support level for the U.S. Dollar Index is located at 90.30. If the U.S. Dollar Index gets to the test of this level, USD/CAD will find itself under more pressure.

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, Canada reported that Manufacturing Sales declined by 2.1% month-over-month in April compared to analyst consensus which called for a decline of 1.1%. New Motor Vehicle Sales totaled 167,000 in April, mostly in line with the analyst forecast of 170,000.

These reports had little impact on USD/CAD as foreign exchange market traders wait for Retail Sales data from the U.S., which will be published on Tuesday, and Fed Interest Rate Decision, which will be released on Wednesday.

The key question is whether Fed will be less dovish as recent data suggests that inflation is rising faster than previously expected while the economic growth is strong. Any hawkish words from Fed may provide significant support to the American currency, although it remains to be seen whether Fed is ready to change its tone.

Advertisement

Technical Analysis

USD to CAD failed to settle above the resistance at 1.2170 and is testing the support at 1.2130. In case this test is successful, USD to CAD will move towards the next support which is located at the 20 EMA at 1.2115.

A move below the 20 EMA will push USD to CAD towards the next support at 1.2100. If USD to CAD declines below this level, it will head towards the support at 1.2080.

On the upside, the nearest resistance level for USD to CAD is located at 1.2170. If USD to CAD manages to settle above this level, it will head towards the next resistance at the 50 EMA at 1.2200. A move above 1.2200 will push USD to CAD towards the resistance at 1.2250.

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