USD/CAD Daily Forecast – Support At 1.3000 In Sight

USD/CAD Video 06.11.20.

Canadian Dollar Continues To Gain Ground Against U.S. Dollar

USD/CAD is currently trying to get to the test of the support level at 1.3000 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has settled below the support level at 92.50 and is moving towards the next support at 92.10. If the U.S. Dollar Index settles below the support at 92.10, it will gain additional downside momentum and head towards September lows at 91.75 which will be bearish for USD/CAD.

Today, U.S. reported Non Farm Payrolls of 638,000 compared to analyst consensus of 600,000. This report presented a positive surprise after the disappointing ADP Employment Change report which was published on Wednesday.

U.S. has also reported that Unemployment Rate decreased from 7.9% in September to 6.9% in October. Analysts expected Unemployment Rate of 7.7% so the report was much better than expectations.

In Canada, Unemployment Rate decreased from 9% in September to 8.9% in October compared to analyst consensus of 8.8%. The Employment Change report indicated that the economy added 83,600 jobs in October.

Currently, the American currency remains under pressure as traders prefer riskier assets. At this point, it is clear that the U.S. election uncertainty did not put any pressure on global risk appetite, which is bearish for the U.S. dollar.

Technical Analysis

USD to CAD continues to move lower. Interestingly, RSI is still located in the moderate territory despite the strength of the recent sell-off so there is plenty of room to develop additional downside momentum.

The nearest support level for USD to CAD is located at 1.3000. In case USD to CAD settles below this level, it will move towards the next support level at 1.2965. A move below the support at 1.2965 will open the way to the test of the next support level at 1.2915.

On the upside, the nearest resistance level is located at 1.3050.  A move above this level will push USD to CAD towards the resistance at 1.3080. If USD to CAD settles above 1.3080, it will get to the test of the significant resistance level at 1.3100.

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