USD/CAD Daily Forecast – Test Of Resistance At 1.2560

U.S. Dollar Continues To Gain Ground Against Canadian Dollar

USD/CAD is currently trying to settle above the resistance at 1.2560 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index settled above the resistance at 92.40 and is slowly moving towards the next resistance level at 92.80. If the U.S. Dollar Index manages to get to the test of this level, USD/CAD will get more support.

Today, U.S. reported that Initial Jobless Claims declined from 386,000 (revised from 373,000) to 360,000 while Continuing Jobless Claims decreased from 3.37 million (revised from 3.34 million) to 3.24 million. The reports indicated that the situation in the job market continued to improve which is bullish for the U.S. dollar as the Fed believes that unemployment rate should decline before it will be able to raise rates.

Meanwhile, WTI oil made an attempt to settle below the $72 level amid concerns about the future of OPEC+ deal. WTI oil has recently managed to rebound back to the $73 level which provided some support to commodity-related currencies including Canadian dollar.

Technical Analysis

USD to CAD managed to get above the resistance level at 1.2540 and is trying to settle above the next resistance at 1.2560. RSI is close to the overbought territory, but there is enough room to develop additional upside momentum in case the right catalysts emerge.

If USD to CAD settles above 1.2560, it will head towards the next resistance level which is located at the recent highs at 1.2590. A move above this level will open the way to the test of the resistance at 1.2625.

On the support side, a move below 1.2540 will push USD to CAD towards the support level at 1.2520. In case USD to CAD declines below the support at 1.2520, it will move towards the next support level at 1.2500. If USD to CAD manages to settle below the support at 1.2500, it will get to the test of the next support at 1.2480.

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