USD/CAD Daily Forecast – Resistance At 1.3420 In SightUSD/CAD settled above the resistance at 1.3330 and is trying to get to the test of the next resistance at 1.3420.
USD/CAD Video 29.10.20.
Canadian Dollar Continues To Lose Ground Against U.S. Dollar
USD/CAD has managed to get above the resistance at 1.3330 and tried to get to the test of the next resistance level at 1.3420 as the U.S. dollar continued to gain ground against a broad basket of currencies while the oil price declined below the $36 level.
The U.S. Dollar Index managed to settle above the 50 EMA at 93.60 and is currently testing the next resistance at the 94 level. If this attempt is successful, the U.S. Dollar Index will head towards September highs at 94.75, although it may face some resistance at lower levels along the way. This scenario will be bullish for USD/CAD.
Today, U.S. reported that Initial Jobless Claims declined from 791,000 (revised from 787,000) to 751,000 while Continuing Jobless Claims dropped from 8.47 million (revised from 8.37 million) to 7.76 million. The country’s third-quarter GDP grew by 33.1% quarter-over-quarter after a collapse in the second quarter.
Interestingly, Pending Home Sales declined by 2.2% while analysts expected growth of 3.4%. This is a second weak housing report in a row which signals that the rebound of this key economic segment is slowing down.
In Canada, Building Permits increased by 17% month-over-month in September compared to analysts’ forecast which called for growth of just 1.1%.
USD to CAD settled above the resistance level at 1.3330 but failed to get above 1.3400. The nearest significant resistance level for USD to CAD is located at 1.3420.
If USD to CAD manages to settle above this level, it will gain additional 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, the previous resistance at 1.3330 will likely serve as the first support level for USD to CAD. In case USD to CAD manages to settle below this level, it will head towards the next support at 1.3260.
A move below 1.3260 will push USD to CAD towards the support at the 50 EMA at 1.3230. If USD to CAD declines below the 50 EMA, it will head towards the support at 1.3200, although it may also get some support at the 20 EMA which is located in the nearby.
For a look at all of today’s economic events, check out our economic calendar.