USD/CAD Daily Forecast – Resistance At 1.2800 In Sight

U.S. Dollar Attempts To Gain More Ground Against Canadian Dollar

USD/CAD is currently trying to get to the test of the resistance level at 1.2800 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index settled above the resistance at 96.25 and is moving towards the next resistance at 96.50. If the U.S. Dollar Index manages to settle back above this level, it will gain additional upside momentum and head towards 96.70 which will be bullish for USD/CAD.

Today, U.S. reported that Pending Home Sales declined by 1.4% month-over-month in October compared to analyst consensus which called for a decline of 7%. On a year-over-year basis, Pending Home Sales grew by 7.5%.

Foreign exchange market traders also had a chance to take a look at Producer Prices report from Canada. The report indicated that Producer Prices increased by 1.3% month-over-month in October, in line with the analyst consensus. On a year-over-year basis, Producer Prices grew by 16.7%.

Traders also continued to monitor the developments in commodity markets. WTI oil managed to move higher after Friday’s sell-off, but this move failed to provide enough support to Canadian dollar.

Technical Analysis

USD to CAD is moving towards the resistance level at 1.2800. In case USD to CAD manages to settle above this level, it will move towards the next resistance at 1.2825.

A successful test of the resistance at 1.2825 will open the way to the test of the resistance at 1.2850. In case USD to CAD manages to settle above this level, it will head towards the next resistance level which is located at 1.2890.

On the support side, a move below 1.2780 will push USD to CAD towards the support at 1.2760. If USD to CAD declines below this level, it will head towards the next support at 1.2730. A successful test of the support at 1.2730 will open the way to the test of the support at 1.2700.

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