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

USD/CAD Video 04.08.20.


Canadian Dollar Gains Ground As Stronger Oil Provides Additional Support To Commodity-Related Currencies

USD/CAD declined towards 1.3350 as the U.S. dollar remained flat against a broad basket of currencies while WTI oil managed to settle above the $41 level.

U.S. Dollar Index has declined towards 93.5 after another attempt to develop more upside momentum and get above the nearest resistance at 94.

Traders await news on coronavirus aid negotiations between Republicans and Democrats. At this point, it looks like the U.S. dollar may find it hard to move higher without clarity on the stimulus front.

Meanwhile, WTI oil is gaining ground, providing support to commodity-related currencies including the Canadian dollar. As a result, USD/CAD finds itself under pressure and moves towards the nearest support level at 1.3330.

Tomorrow, the U.S. will provide ADP Employment Change report which is expected to show that private employment has increased by 1.5 million in July.

ADP Employment Change report will be the first one in a series of employment reports which are due to be published from Wednesday to Friday.

These reports may have a significant impact on the currency market as they will show whether the current problems on the coronavirus front have put additional pressure on the U.S. job market.

Technical Analysis

USD to CAD continues to trade in a range between the support level at 1.3330 and the resistance level at the 20 EMA at 1.3440.

Currently, USD to CAD has declined closer to the low end of the current trading range and has good chances to test the support at 1.3330.

This support level has already been tested several times and proved its strength so USD to CAD will need significant downside catalysts to move below 1.3330.

If this happens, USD to CAD will gain downside momentum and could quickly find itself at the next support level at 1.3270.

On the upside, USD to CAD will have to get above the resistance at the 20 EMA to have a chance to develop upside momentum. In this case, it will head towards the major resistance level at 1.3500.

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.