USD/CAD Daily Forecast – Stuck Near Resistance At 1.2800USD/CAD failed to settle below the support at 1.2775 and moved back to the nearest 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.
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 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.
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.