USD/CAD Daily Forecast – Test Of Resistance At 1.2470

USD/CAD Video 17.03.21.

U.S. Dollar Is Gaining Ground Against Canadian Dollar

USD/CAD is currently trying to settle back above the resistance at 1.2470 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index remains in the range between the support at 91.75 and 92. Most likely, the U.S. Dollar Index will stay in this range until the Fed announces its Interest Rate Decision and provides commentary. In case the U.S. Dollar Index settles above the 92 level, it will gain additional upside momentum which will be bullish for USD/CAD.

Today, foreign exchange market traders will wait for Fed comments before making any serious moves. Meanwhile, Treasury yields have moved to new highs which provided some support to the American currency. In case Treasury yields gain more ground after the Fed releases its commentary, the U.S. dollar will get additional support.

Meanwhile, the pullback in the oil market has put some pressure on the Canadian dollar which pulled back from recent highs. If WTI oil manages to settle below the $64 and moves lower, Canadian dollar will find itself under more pressure.

Technical Analysis

USD to CAD is currently testing the nearest resistance level at 1.2470. If this test is successful, USD to CAD will head towards the next resistance at 1.2500. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

A move above the resistance at 1.2500 will push USD to CAD towards the next resistance level which is located at 1.2525. In case USD to CAD manages to settle above this level, it will head towards the resistance at 1.2550.

On the support side, a move below 1.2470 will push USD to CAD towards the support at 1.2450. If USD to CAD settles below this level, it will head towards the next support at 1.2425. A move below the support at 1.2425 will open the way to the test of the support at 1.2400.

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