USD/CAD Daily Forecast – Canadian Dollar Stays Strong Against U.S. DollarUSD/CAD settled below 1.2100 and is testing the support at 1.2080.
USD/CAD Video 17.05.21.
U.S. Dollar Is Under Pressure At The Beginning Of The Week
USD/CAD is trying to settle below the support at 1.2080 while the U.S. dollar is losing ground 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 has recently managed to get below the support at 90.30 and is moving lower. The next support level for the U.S. Dollar Index is located at the 90 level. In case the U.S. Dollar Index gets to the test of this level, USD/CAD will find itself under more pressure.
Today, the U.S. reported that NY Empire State Manufacturing Index declined from 26.3 in April to 24.3 in May. Analysts expected that NY Empire State Manufacturing Index will decline to 23.9.
In Canada, Housing Starts totaled 268,600 in April compared to analyst consensus of 280,000. Housing Starts data from the U.S. will be released tomorrow and is projected to show that Housing Starts declined by 2.8% month-over-month in April after growing by 19.4% in March. Building Permits are expected to decline by 0.9%.
Foreign exchange market traders will pay attention to housing data as it will show how the housing market reacts to recent increases in commodity prices.
USD to CAD managed to settle below the support at 1.2100 and is testing the support at 1.2080. In case this test is successful, USD to CAD will move towards the next support level at 1.2065.
A move below the support at 1.2065 will push USD to CAD towards the next support at 1.2040. If USD to CAD declines below this level, it will head towards the support at 1.2000.
On the upside, the previous support at 1.2100 will likely serve as the first resistance level for USD to CAD. If USD to CAD moves above this level, it will head towards the resistance at 1.2130. This resistance level has been recently tested and proved its strength. A move above 1.2130 will open the way to the test of the resistance at 1.2170.
For a look at all of today’s economic events, check out our economic calendar.