USD/CAD Daily Forecast – Strong Economic Reports Provide Support To U.S. Dollar
USD/CAD Video 15.04.21.
U.S. Dollar Gains Some Ground Against Canadian Dollar
USD/CAD made an attempt to settle below 1.2500 but failed to develop sufficient downside momentum and rebounded back towards 1.2550 while the U.S. dollar remained mostly flat against a broad basket of currencies.
The U.S. Dollar Index did not manage to settle below the support at 91.50 and rebounded closer towards the nearest resistance level at the 50 EMA at 91.80. In case the U.S. Dollar Index gets to the test of this level, USD/CAD will get more support on the foreign exchange market.
Today, the U.S. reported that Retail Sales increased by 9.8% month-over-month in March compared to analyst consensus which called for growth of 5.9%. Initial Jobless Claims declined from 769,000 (revised from 744,000) to 576,000. The reports indicated that the U.S. economy continued to rebound at a fast pace.
Interestingly, the reports served as a material bullish catalyst for the U.S. dollar which was sufficient enough to offset the impact of falling Treasury yields. The yield of 10-year Treasuries gained strong downside momentum and managed to get to the test of the 1.55% level. The continuation of this move may put some pressure on the American currency, but positive economic news may be able to offset this pressure.
USD to CAD is currently trying to settle above the resistance level at the 20 EMA at 1.2555. In case USD to CAD manages to settle above the 20 EMA, it will move towards the next resistance which is located at the 50 EMA at 1.2590.
A successful test of the resistance at the 50 EMA will open the way to the test of the next resistance level at 1.2625.
On the support side, the nearest support level for USD to CAD is located at 1.2525. In case USD to CAD gets back below this level, it will move towards the next support at 1.2500. A move below 1.2500 will push USD to CAD towards the support at 1.2470.
For a look at all of today’s economic events, check out our economic calendar.