USD/CAD Daily Forecast – Test Of Resistance At 1.2100

USD/CAD Video 26.05.21.

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD is currently trying to settle above the resistance at 1.2100 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance at the 90 level. In case this test is successful, the U.S. Dollar Index will move towards the resistance at 90.30 which will be bullish for USD/CAD.

No important economic reports are scheduled to be released in the U.S. and Canada today so foreign exchange market traders are focused on general market sentiment.

The U.S. dollar managed to gain some upside momentum against a basket of currencies while Treasury yields remained mostly flat, and it looks that the American currency will need more downside catalysts to get below recent lows.

Tomorrow, traders will have a chance to take a look at employment data from the U.S. Analysts expect that Initial Jobless Claims declined from 444,000 to 425,000 while Continuing Jobless Claims decreased from 3.75 million to 3.68 million.

Technical Analysis

USD to CAD managed to settle above the resistance at 1.2080 and is testing the next resistance level at 1.2100. In case this test is successful, USD to CAD will head towards the next resistance at 1.2130. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.

A move above this level will push USD to CAD towards the next resistance which is located at the 20 EMA at 1.2140. If USD to CAD settles above the 20 EMA, it will move towards the resistance at 1.2170. A successful test of this level will open the way to the test of the resistance at 1.2200.

On the support side, a move below 1.2100 will push USD to CAD back towards 1.2080. In case USD to CAD declines below this level, it will head towards the support at 1.2065. A move below this level will push USD to CAD towards the support which is located at the recent lows at 1.2040.