USD/CAD Daily Forecast – Resistance At 1.2480 Stays Strong

Canadian Dollar Is Mostly Flat Against U.S. Dollar Ahead Of The Weekend

USD/CAD faced resistance at the 50 EMA at 1.2480 and pulled back while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index has recently tried to settle above the resistance level at 94.50 but failed to develop sufficient upside momentum and pulled back towards 94.40. A move above 94.50 will push the U.S. Dollar Index towards the resistance at 94.75 which will be bullish for USD/CAD.

Today, U.S. released Non Farm Payrolls report which showed that U.S. economy added 531,000 jobs in October compared to analyst consensus of 450,000. Foreign exchange market traders also took a look at Unemployment Rate report which indicated that Unemployment Rate decreased from 4.8% in September to 4.6% in October.

In Canada, Unemployment Rate decreased from 6.9% in September to 6.7% in October compared to analyst consensus of 6.8%. Employment Change report indicated that Canadian economy added 31,200 jobs in October compared to analyst consensus of 50,000.

Technical Analysis

USD to CAD did not manage to settle above the resistance level at the 50 EMA at 1.2480 and declined towards the nearest support level which is located at 1.2450.

In case USD to CAD settles below the support at 1.2450, it will head towards the next support level at the 20 EMA near 1.2420. A successful test of the support at the 20 EMA will open the way to the test of the next support at 1.2400. If USD to CAD gets below 1.2400, it will continue its pullback and get to the test of the next support at 1.2380.

On the upside, USD to CAD needs to stay above the support at 1.2450 to have a chance to develop upside momentum in the near term. The next resistance level is located at the 50 EMA at 1.2480.

In case USD to CAD manages to settle above 1.2480, it will head towards the resistance at 1.2500. A successful test of this level will push USD to CAD towards the resistance at 1.2530. If USD to CAD gets above 1.2530, it will head towards the next resistance at 1.2550.

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