USD/CAD Daily Forecast – Test Of Resistance At 1.2325USD/CAD settled above the resistance at 1.2300 and is testing the next resistance at 1.2325.
Canadian Dollar Is Losing Ground Against U.S. Dollar
USD/CAD is currently trying to settle above the resistance at 1.2325 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get back above the resistance at 91.80 and is moving towards the next resistance level at 92. In case the U.S. Dollar Index gets to the test of this level, USD/CAD will get more support.
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Today, foreign exchange market traders focused on economic reports from U.S. Initial Jobless Claims declined from 418,000 (revised from 412,000) to 411,000 compared to analyst consensus of 380,000. Continuing Jobless Claims decreased from 3.53 million (revised from 3.52 million) to 3.39 million.
Durable Goods Orders report indicated Durable Goods Orders increased by 2.3% month-over-month in May compared to analyst consensus which called for growth of 2.8%.
At this point, it looks that U.S. dollar has managed to stabilize after the recent pullback. The yields of 10-year Treasuries remain below 1.50% which indicates that bond traders are not worried about inflation but the situation may change quickly if we see more evidence of rising prices. If Treasury yields move higher, U.S. dollar may get more support.
USD to CAD managed to settle above the resistance at 1.2300 and is testing the next resistance level at 1.2325. In case USD to CAD manages to settle above this level, it will move towards the next resistance level which is located at 1.2350.
RSI has pulled back after the recent sell-off so there is plenty of room to gain upside momentum in case the right catalysts emerge.
In case USD to CAD settles above 1.2350, it will head towards the next resistance level at 1.2385. A move above this level will open the way to the test of the resistance at 1.2420 although USD to CAD may also face some resistance at 1.2400.
On the support side, a move below 1.2325 will push USD to CAD back towards the support at 1.2300. If USD to CAD declines below this level, it will head towards the next support at 1.2270. A move below 1.2270 will open the way to the test of the support at the 20 EMA at 1.2250.
For a look at all of today’s economic events, check out our economic calendar.