USD/CAD Daily Forecast – Test Of Resistance At 1.2675

U.S. Dollar Gains Ground Against Canadian Dollar At The Start Of The Week

USD/CAD is currently trying to settle above the resistance at 1.2675 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index settled above the resistance at 96.25 and made an attempt to get to the test of the next resistance level which is located at 96.50. In case the U.S. Dollar Index manages to get above 96.50, it will head towards the next resistance level at 96.70 which will be bullish for USD/CAD.

Today, foreign exchange market traders reacted to Biden’s decision to reappoint Jerome Powell As Fed chairman. Markets love certainty, and traders feel comfortable with Powell’s decisions.

The support for the U.S. dollar was broad, and the rebound of WTI oil failed to provide material support to Canadian dollar. Currently, WTI oil is trying to settle back above the $77 level. In case this attempt is successful, WTI oil will head towards the resistance at the 50 EMA at $78.50 which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD managed to get above the resistance level at 1.2650 and is trying to settle above the next resistance at 1.2675. In case this attempt is successful, USD to CAD will move towards the resistance at 1.2700.

A move above the resistance level at 1.2700 will open the way to the test of the next resistance which is located at 1.2730. In case USD to CAD climbs above this level, it will head towards the resistance level at 1.2760.

On the support side, the previous resistance at 1.2650 will serve as the first support level for USD to CAD. In case USD to CAD declines below this level, it will move towards the support level at 1.2625. In case USD to CAD manages to settle below 1.2625, it will head towards the support level which is located at 1.2590.

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