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USD/CAD Daily Forecast – Test Of Resistance At 1.2625

By:
Vladimir Zernov
Published: Mar 25, 2021, 16:41 UTC

USD/CAD managed to get above the resistance at 1.2590 and is trying to settle above the next resistance at 1.2625.

USD/CAD

In this article:

USD/CAD Video 25.03.21.

U.S. Dollar Remains Strong Against Canadian Dollar

USD/CAD  is testing the resistance at the 50 EMA at 1.2625 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the resistance at 92.70 and gained additional upside momentum. The next resistance level for the U.S. Dollar Index is located at the 93 level. If the U.S. Dollar Index gets to the test of this level, USD/CAD will get additional support.

Today, U.S. reported that Initial Jobless Claims declined from 781,000 (revised from 770,000) to 684,000 compared to analyst consensus of 730,000. Continuing Jobless Claims report was also better than expected as Continuing Jobless Claims declined from 4.13 million (revised from 4.12 million) to 3.87 million.

Meanwhile, foreign exchange market traders remained focused on the dynamics of commodity markets. Virus worries put strong pressure on the oil market, and WTI oil declined below the $58 level despite problems in the Suez Canal.

According to recent reports, the container ship that is currently blocking the Suez Canal may be stuck there for several weeks, which is short-term bullish for the oil market. However, worries about another wave of the virus are too strong at this point, which is bearish for commodities and commodity-related currencies like Canadian dollar.

Technical Analysis

usd cad march 25 2021

USD to CAD managed to settle above the resistance at 1.2590 and is trying to settle above the next resistance level which is located at the 50 EMA at 1.2625.

In case USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2665. A successful test of the resistance at 1.2665 will open the way to the test of the resistance at 1.2700.

On the support side, the previous resistance level at 1.2590 will serve as the first support level for USD to CAD. If USD to CAD declines below this level, it will head towards the next support which is located at the 20 EMA at 1.2560. A move below this level will push USD to CAD towards the support at 1.2525.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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