USD/CAD Daily Forecast – Resistance At 1.3400 Stays StrongUSD/CAD failed to settle above the resistance at 1.3400 but continues its attempts to gain more upside momentum.
USD/CAD Video 28.09.20.
The U.S. Dollar Index did not manage to settle above the significant resistance level at 94.65 and tested the support at 94.20. The U.S. Dollar Index received strong support at 94.20 and is currently trying to get back closer to 94.50.
At this point, it looks like further upside of USD/CAD will require additional strength of the U.S. Dollar Index. If the U.S. Dollar Index moves below the support at 94.20, USD/CAD may gain downside momentum.
There are no important economic reports scheduled to be released in U.S. and Canada today so USD/CAD trading dynamics will depend on general market sentiment.
Today, demand for riskier assets improved after China reported that profits at its industrial firms continued to grow. However, the support from this positive news was not sufficient enough to improve the performance of the Canadian dollar which remains mostly flat against the American currency.
In recent trading sessions, USD to CAD made several attempts to settle above the resistance at 1.3400. These attempts looked promising but USD to CAD failed to develop additional upside momentum. However, USD to CAD continues to trade close to 1.3400 as no sell-off happened after the failed attempts to settle above this level.
The nearest resistance for USD to CAD has emerged near 1.3420. If USD to CAD manages to settle above this resistance level, it will gain more upside momentum and head towards the next resistance at 1.3450. A move above the resistance at 1.3450 will open the way to the test of the next resistance level at 1.3500.
On the support side, USD to CAD gets some support near 1.3355. However, the main support level for USD to CAD is located at 1.3330. If USD to CAD moves below this support level, it will gain downside momentum and head towards the next support at the 50 EMA at 1.3275.
For a look at all of today’s economic events, check out our economic calendar.