Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

USD/CAD Video 14.01.21.

Canadian Dollar Gains Ground Against U.S. Dollar

USD/CAD managed to get below the support at 1.2665 and is moving towards the next support level at 1.2625 while the U.S. dollar is losing ground against a broad basket of currencies.

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

75% of retail CFD investors lose money

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 90.50 but failed to develop sufficient upside momentum and declined closer to the nearest support level at the 20 EMA at 90.20. If the U.S. Dollar Index settles below the 20 EMA, it will move towards the 90 level which will be bearish for USD/CAD.

Today, the U.S. reported that Initial Jobless Claims increased to 965,000 while Continuing Jobless Claims grew to 5.27 million. The reports highlighted the need for another round of stimulus. Recent reports suggested that Joe Biden will soon present a stimulus plan worth $1.5 billion – $2 billion.

It remains to be seen whether the new stimulus plan will put additional pressure on the U.S. dollar as money-printing may push U.S. government bond yields higher, providing some support to the American currency on the foreign exchange market.


Technical Analysis

USD to CAD gained strong downside momentum and is trying to get to the test of the support level which is located near January lows at 1.2625. RSI is still in the moderate territory so there is plenty of room to gain additional momentum in case the right catalysts emerge.

In case USD to CAD manages to settle below the support at 1.2625, it will move towards the next support level at 1.2590. A successful test of the support at 1.2590 will open the way to the test of the support at 1.2550. I’d note that USD to CAD has not visited this territory for several years so it remains to be seen whether previous levels will be relevant for today’s trading.

On the upside, the previous support at 1.2665 will likely serve as the first resistance level for USD to CAD. If USD to CAD gets back above this level, it will head towards the next resistance at 1.2700.

A move above 1.2700 will push USD to CAD towards the resistance at 1.2720. In case USD to CAD settles above 1.2720, it will head towards the 20 EMA at 1.2740.

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

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.