USD/CAD Daily Forecast – Resistance At 1.3235 In Sight

USD/CAD Video 24.08.20.

U.S. Dollar Makes Another Attempt To Rebound

USD/CAD is trying to settle above 1.3200 as the U.S. dollar is flat against a broad basket of currencies while WTI oil is gaining ground amid production shutdowns in the U.S. Gulf of Mexico.

Earlier, the U.S. Dollar Index was trying to settle below the 93 level but managed to gain more upside momentum and returned back above 93. The rebound in U.S. government bond yields may be providing some support to the American currency.

There are no important economic reports scheduled to be released today in the U.S. or Canada so USD/CAD is in the hands of market sentiment.

In recent days, USD/CAD was trying to consolidate below 1.3200 but it looks like it will make another attempt to gain more upside momentum.

Currency traders will be waiting for the commentary from Fed Chair Jerome Powell who is due to speak in Jackson Hole on Thursday. The recent FOMC Minutes provided significant support to the American currency so additional commentary from Powell may have a very material impact on USD/CAD.

If Powell is not as dovish as the market wants him to be, the rebound of the U.S. dollar will continue.

Technical Analysis

USD to CAD is currently trying to get to the test of the nearest resistance level at 1.3235. In case this attempt is successful, USD to CAD will gain additional upside momentum and head towards the next resistance level at the 20 EMA at 1.3270.

RSI is at moderate levels so there is plenty of room to gain momentum. In case USD to CAD manages to settle above the 20 EMA, it will move towards the resistance at 1.3330.

On the support side, the nearest material support level at the recent lows at 1.3135 has been tested during the current trading session. At this point, this support level remains strong, and each attempt to settle below this level is followed by a significant rebound.

In case USD to CAD moves below this support level, it will gain downside momentum and head towards the next support at 1.3080.

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