USD/CAD Daily Forecast – Canadian Dollar Tries To Move Higher As WTI Oil Gets Above The $75 Level

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD is currently trying to settle below the support at 1.2650 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance at 93.40. This resistance level has already been tested many times and proved its strength. In case the U.S. Dollar Index settles above 93.40, it will move towards the resistance at 93.75 which will be bullish for USD/CAD.

Today, U.S. reported that Durable Goods Orders increased by 1.8% month-over-month in August compared to analyst consensus of 0.7%. The report had minimal impact on currency dynamics as foreign exchange market traders focused on the dynamics of commodity and bond markets.

The yield of 10-year Treasuries has recently made an attempt to settle above the psychologically important 1.50% level. This move provided support to the U.S.dollar.

Meanwhile, Canadian dollar received support from strong oil markets as WTI oil managed to get above the important $75 level. In case WTI oil manages to settle above this level, it will gain additional upside momentum and head towards the next resistance at the $77 level which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD continues its attempts to settle below the support at 1.2650. In case USD to CAD manages to settle below this level, it will get to another test of the next support level which is located at the 50 EMA at 1.2630.

A move below the 50 EMA will push USD to CAD towards the support at 1.2590. If USD to CAD declines below the support at 1.2590, it will move towards the next support at 1.2550.

On the upside, USD to CAD needs to settle back above 1.2650 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 20 EMA at 1.2685.

If USD to CAD moves above the 20 EMA, it will head towards the resistance at 1.2710. A successful test of this level will push USD to CAD toward the resistance at 1.2730.

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