USD/CAD Daily Forecast – Stuck In A Range Between 1.3050 And 1.3120

USD/CAD Video 20.11.20.

Canadian Dollar Is Mostly Flat Against U.S. Dollar Ahead Of The Weekend

USD/CAD failed to settle above 1.3100 and is trying to settle below the nearest support level at 1.3080 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. dollar was not volatile on the foreign exchange market today although the U.S. Dollar Index made an attempt to settle below the nearest support level at 92.10.

This attempt was not successful, and the U.S. Dollar Index rebounded closer to the nearest resistance at 92.50 but did not manage to get to the test of this level.

If the U.S. Dollar Index settles above 92.50, it will gain upside momentum and head towards the next resistance level at 92.80 which will be bullish for USD/CAD.

Today, Canada reported that Retail Sales increased by 1.1% month-over-month in September. Analysts projected that Retail Sales would grow by just 0.2% so the report was much better than expected. On a year-over-year basis, Retail Sales increased by 4.6%.

Meanwhile, Canada’s new Housing Price Index showed growth of 0.8% in October. On a year-over-year basis, Housing Price Index increased by 3.9%. Just like the U.S. housing market, Canada’s housing market remains strong amid the pandemic.

Technical Analysis

USD to CAD is currently trading near the support level at 1.3080 after an unsuccessful attempt to settle below the next support at 1.3050.

USD to CAD has spent the recent trading sessions between the support at 1.3050 and the resistance at 1.3120 and failed to gain any momentum. All attempts to get out of this range yielded no results, and USD to CAD will certainly need additional catalysts to get away from current levels.

If USD to CAD manages to settle below the support at 1.3050, it will gain downside momentum and move towards the major support level at 1.3000.

On the upside, USD to CAD needs to settle above 1.3100 to get to the test of the 20 EMA which has declined to 1.3115. If USD to CAD gets above the 20 EMA, it will head towards the next resistance level at the 50 EMA at 1.3165.

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