USD/CAD Daily Forecast – Test Of Resistance At 1.2710

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD is currently trying to settle above the resistance at 1.2710 while 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 96.25 and is moving towards the next resistance level at 96.50. In case the U.S. Dollar Index gets to the test of this level, USD/CAD will get more support.

Today, foreign exchange market traders focused on Initial Jobless Claims and Continuing Jobless Claims reports from U.S. Initial Jobless Claims report indicated that 184,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 215,000. This report provided significant support to the American currency as traders bet that Fed will start aggressive tapering due to the solid health of the job market. Continuing Jobless Claims increased from 1.96 million to 1.99 million while analysts expected that they would decline to 1.9 million.

Traders also kept an eye on the developments in commodity markets. WTI oil moved lower after an unsuccessful test of the 20 EMA at $73.20 which was bearish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD managed to get above the 20 EMA at 1.2695 and is trying to settle above the next resistance level at 1.2710. In case this attempt is successful, USD to CAD will move towards the next resistance level which is located at 1.2730.

A move above the resistance at 1.2730 will open the way to the test of the resistance at 1.2760. In case USD to CAD manages to climb above 1.2760, it will move towards the resistance at 1.2780.

On the support side, a move below the 20 EMA will push USD to CAD back towards the support at 1.2680. If USD to CAD settles below this level, it will head towards the support at 1.2650. A successful test of the support at 1.2650 will push USD to CAD towards the next support level which is located near the 50 EMA at 1.2625.

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