USD/CAD Daily Forecast – Test Of Resistance At 1.2590

U.S. Dollar Gains Some Ground Against Canadian Dollar Ahead Of The Weekend

USD/CAD is currently trying to settle above the resistance at 1.2590 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level which is located at 92.80. In case the U.S. Dollar Index gets above 92.80, it will move towards the resistance at 93.10 which will be bullish for USD/CAD.

Today, foreign exchange market traders focused on Retail Sales data from U.S. The report indicated that Retail Sales increased by 0.6% month-over-month in June while analysts projected that they would decline by 0.4%.

U.S. has also released preliminary Consumer Sentiment data for July. Surprisingly, Consumer Sentiment declined from 85.5 in June to 80.8 in July while analysts expected that it would grow to 86.5.

Meanwhile, WTI oil  has recently made an attempt to settle below the $71 level amid concerns about the future of OPEC+ deal and the third wave of coronavirus in the world. This move has put some additional pressure on the Canadian dollar.

Technical Analysis

USD to CAD managed to settle above the resistance at 1.2560 and is trying to settle above the next resistance level at 1.2590. In case this attempt is successful, USD to CAD will move towards the resistance level which is located at 1.2625.

In case USD to CAD manages to settle above 1.2625, it will head towards the resistance at 1.2650. If USD to CAD gets above 1.2650, it will move towards the next resistance at 1.2685.

On the support side, the previous resistance level at 1.2560 has already served as the first support level for USD to CAD. A successful test of this level will push USD to CAD towards the support at 1.2540. In case USD to CAD manages to settle below the support at 1.2540, it will head towards the next support level which is located at 1.2520.

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