Vladimir Zernov
Add to Bookmarks

USD/CAD Video 12.05.21.

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD is currently trying to settle back above 1.2100 while the U.S. dollar is gaining ground against a broad basket of currencies.

Know where USD/CAD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index gained upside momentum after the release of U.S. inflation reports and managed to settle above 90.50. Currently, it is trying to settle above the resistance at 90.70. In case this attempt is successful, the U.S. Dollar Index will head towards the next resistance that is located at the 20 EMA at 91 which will be bullish for USD/CAD.

Today, the U.S. reported that Inflation Rate increased by 4.2% year-over-year in April compared to analyst consensus of 3.6%. Core Inflation Rate grew by 3% year-over-year.

While the Fed has previously stated that it expected a temporary spike in prices and that it was ready to let inflation run above the 2% level for some time, inflation numbers provided significant support to the U.S. dollar on the foreign exchange market.

Treausury yields rallied as traders bet that the Fed would have to reduce stimulus sooner than previously expected, which will be bullish for the American currency. If yields continue to move higher in the upcoming trading sessions, the U.S. dollar may get more support.


Technical Analysis

USD to CAD made an attempt to settle below the support at 1.2065 but lost momentum and rebounded towards the resistance at 1.2100. In case USD to CAD manages to settle above this level, it will move towards the resistance at 1.2130.

A successful test of this level will push USD to CAD towards the next resistance at 1.2170. In case USD to CAD settles above 1.2170, it will head towards the resistance at 1.2200.

On the support side, the nearest support level for USD to CAD is located at 1.2080. A move below the support at 1.2080 will open the way to the test of the next support at 1.2065.

If USD to CAD declines below this level, it will move towards the support at 1.2040. A successful test of this level will push USD to CAD towards the support at 1.2000.

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