Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

USD/CAD Video 20.10.20.


Canadian Dollar Developed Strong Upside Momentum

USD/CAD is testing the support at 1.3135 as the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is trying to settle below the support at 93.00 on hopes that U.S. Republicans and Democrats will be able to reach consensus on the new stimulus deal.

U.S. President Donald Trump has already announced that he was willing to get a deal that could be even bigger than the $2.2 trillion deal proposed by Democrats. Currently, stimulus talks continue and their outcome remains uncertain.

If the U.S. Dollar Index declines below the 93 level, it will gain additional downside momentum and head towards the next support at 92.80 which will be bearish for USD/CAD.

Today, U.S. reported that Building Permits increased by 5.2% month-over-month in September while Housing Starts grew by 1.9%. The housing market is showing strength but it remains to be seen whether other segments of the economy will continue to rebound in case the U.S. lawmakers fail to agree to a new round of stimulus.

Technical Analysis

USD to CAD gained strong downside momentum and is trying to settle below the nearest support level at 1.3135. In case this attempt is successful, USD to CAD will continue its downside move and get to the test of the next support level at October lows at 1.3100.

The support at 1.3100 has been tested several times and proved its strength so USD to CAD will likely need additional catalysts to move below this level. If USD to CAD declines below 1.3100, it will head towards the next support level at 1.3050. A move below 1.3050 will open the way to the test of the support at September lows at 1.3000.

On the upside, USD to CAD needs to get back above 1.3135 to have a chance for a rebound. If USD to CAD gains upside momentum, it will move towards the resistance near the 20 EMA at 1.3200.

If USD to CAD settles above the resistance at 1.3200, it will continue its upside move and head towards the test of the next resistance at the 50 EMA near 1.3240.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.