Vladimir Zernov
Add to Bookmarks

USD/CAD Video 17.12.20.


U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD has recently made another attempt to settle below the support at 1.2700 while the U.S. dollar remained under serious pressure on the foreign exchange market.

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 managed to get below the psychologically important support level at 90 and continued its downside move. If the U.S. Dollar Index gains additional downside momentum, it will head towards the next support at 89.40 which will be bearish for USD/CAD.

Today, U.S. reported that Initial Jobless Claims increased from 862,000 (revised from 853,000) to 885,000 while Continuing Jobless Claims declined from 5.78 million (revised from 5.76 million) to 5.51 million.

The second wave of the virus puts pressure on the U.S. job market so the U.S.  economy clearly needs another round of stimulus. According to recent reports, U.S. lawmakers are making progress in negotiations but talks may drag into the weekend.

In Canada, ADP Employment Change report showed that private businesses added 40,800 jobs in November while analysts expected that the economy would lose 50,000 jobs. Canadian dollar is also supported by stronger oil which continues to gain ground despite near-term challenges on the demand front.

Technical Analysis

USD to CAD is currently trying to settle below the support at 1.2720. If this attempt is successful, USD to CAD will get to another test of the support level at 1.2700. This support level has already been tested several times during recent trading sessions and proved its strength.

In case USD to CAD manages to settle below the support at 1.2700, it will gain downside momentum and head towards the next support level at 1.2675. A move below 1.2675 will open the way to the test of the next support at 1.2630.

On the upside, USD to CAD needs to settle above 1.2720 to have a chance to develop upside momentum. The next resistance level for USD to CAD is located at 1.2750. If USD to CAD settles above this level, it will head towards the major resistance level at 1.2775.

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