USD/CAD Daily Forecast – Stuck Near Resistance At 1.2800

USD/CAD Video 09.12.20.

U.S. Dollar Continues Its Attempts To Gain Upside Momentum

USD/CAD is still trading near the resistance level at 1.2800 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained upside momentum and is currently trying to settle above the resistance at the 91 level. If this attempt is successful, the U.S. Dollar Index will head towards the next material resistance level at 91.50 which will be bullish for USD/CAD.

Today, Bank of Canada announced its Interest Rate Decision and left the interest rate unchanged, in line with the analyst consensus. The Bank noted that Canadian economy gained good momentum at the beginning of the fourth quarter, but recent developments on the coronavirus front would likely put some pressure on the recovery in the first quarter of 2021.

Tomorrow, foreign exchange market traders will focus on inflation reports from the U.S. Inflation Rate is expected to increase by 1.1% year-over-year in November while Core Inflation Rate is projected to grow by 1.6%.

In addition to inflation reports, U.S. will release Initial Jobless Claims report which is expected to show that 725,000 Americans filed for unemployment benefits in a week. These reports may have a material impact on the general near-term dynamics of the American currency so USD/CAD traders should pay close attention to them.

Technical Analysis

The technical picture has not changed much for USD to CAD in recent trading sessions as it remains stuck near the resistance at 1.2800. USD to CAD has already made several attempts to settle above this level but these attempts were not successful.

The next resistance level for USD to CAD is located at 1.2835. If USD to CAD gets above this level, it will head towards the resistance at 1.2860. A move above 1.2860 will push USD to CAD towards the next resistance at 1.2900.

On the support side, the nearest support for USD to CAD is located at 1.2775. This support level has already been tested many times and proved its strength. A move below this level will push USD to CAD to the test of the next support level at 1.2750.

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