USD/CAD Daily Forecast – Resistance At 1.2500 Stays Strong

USD/CAD Video 22.04.21.

Canadian Dollar Is Mostly Flat Against U.S. Dollar

USD/CAD has recently tried to settle above 1.2500 but failed to develop sufficient upside momentum and pulled back while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to get below the support level at 91 and rebounded towards the nearest resistance level at 91.30. In case the U.S. Dollar Index settles above this level, it will head towards the resistance at 91.50 which will be bullish for USD/CAD.

Today, the U.S. reported that Initial Jobless Claims declined from 586,000 (revised from 576,000) to 547,000 while Continuing Jobless Claims declined from 3.71 million (revised from 3.73 million) to 3.68 million.

Existing Home Sales declined by 3.7% month-over-month in March compared to analyst consensus which called for growth of 0.8%. The previous report for February was revised from -6.6% to -6.3%.

In Canada, New Housing Price Index increased by 1.1% month-over-month in March compared to analyst consensus which called for growth of 1.4%. On a year-over-year basis, New Housing Price Index increased by 7.9%.

Technical Analysis

USD to CAD has recently made an attempt to settle above the resistance at 1.2500 but this attempt yielded no results. Currently, USD to CAD is trying to get to another test of the support level at 1.2470. This support level has been tested several times in recent trading sessions and proved its strength.

In case USD to CAD declines below the support at 1.2470, it will gain additional downside momentum and head towards the next support level which is located at 1.2450. A successful test of the support at 1.2450 will push USD to CAD towards the next support at 1.2425.

On the upside, USD to CAD must settle above 1.2500 to have a chance to develop upside momentum in the near term. The next resistance level for USD to CAD is located at 1.2525.

If USD to CAD manages to settle above this level, it will move towards the resistance at the 20 EMA at 1.2540. A move above the 20 EMA will open the way to the resistance at 1.2565.

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