USD/CAD Daily Forecast – Test Of Resistance At 1.2525

USD/CAD Video 22.03.21.

U.S. Dollar Moves Higher At The Beginning Of The Week

USD/CAD is currently trying to settle above the resistance at 1.2525 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance level at 92 and pulled back closer towards the support at 91.75. In case the U.S. Dollar Index manages to settle below this level, it will head towards the next support at 91.50 which will be bearish for USD/CAD.

Today, the U.S. reported that Existing Home Sales declined by 6.6% month-over-month in February while analysts expected that they would decline by 3%. Tomorrow, traders will have a chance to take a look at New Home Sales data from the U.S. Analysts expect that New Home Sales have declined by 6.5% month-over-month in February.

Meanwhile, foreign exchange market traders will continue to monitor the developments in the U.S. government bond markets. Treasury yields have pulled back from recent highs, and support for the U.S. dollar decreased. However, the U.S. dollar managed to gain some ground against Canadian dollar at the start of the week as commodity markets remained under some pressure.

Technical Analysis

USD to CAD managed to settle above the resistance at 1.2500 and is trying to settle above the next resistance level at 1.2525. In case this attempt is successful, USD to CAD will move towards the next resistance at the 20 EMA at 1.2550. This resistance level has been recently tested and proved its strength.

If USD to CAD settles above the 20 EMA at 1.2550, it will head towards the resistance at 1.2590. A move above the resistance at 1.2590 will open the way to the test of the resistance at the 50 EMA at 1.2630.

On the support side, the previous resistance at 1.2500 will serve as the first support level for USD to CAD. If USD to CAD manages to settle below this level, it will move towards the support at 1.2470. A move below the support at 1.2470 will push USD to CAD towards the next support at 1.2450.

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