USD/CAD Daily Forecast – Test Of Resistance At 1.2760

Canadian Dollar Is Losing Ground Against U.S. Dollar

USD/CAD is currently trying to settle above the resistance at 1.2760 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is testing the resistance level at 93.10. In case this test is successful, the U.S. Dollar Index will move towards the next resistance level at 93.40 which will be bullish for USD/CAD.

Today, U.S. released Michigan Consumer Sentiment report which indicated that Consumer Sentiment improved from 70.3 in August to 71 in September compared to analyst consensus of 72.

WTI oil managed to get below the $72 level and made an attempt to settle below $71.50 which was bearish for commodity-related currencies, including Canadian dollar.

Foreign exchange market traders also focused on the developments in U.S. government bond markets. The yield of 10-year Treasuries is currently trying to settle above monthly highs near 1.38%. A move above this level will push it towards the resistance at 1.42% which will be bullish for the American currency.

Technical Analysis

USD to CAD settled above the resistance level at 1.2730 and is trying to settle above the next resistance at 1.2760. In case this attempt is successful, USD to CAD will move towards the resistance at 1.2785.

A successful test of the resistance at 1.2785 will open the way to the test of the next resistance level which is located at 1.2810. If USD to CAD gets above the resistance at 1.2810, it will continue its upside move and head towards the next resistance level at 1.2830.

On the support side, the previous resistance at 1.2730 will serve as the first support level for USD to CAD. In case USD to CAD manages to settle below this level, it will head towards the next support at 1.2710.

A successful test of the support at 1.2710 will push USD to CAD towards the next support at 1.2685. If USD to CAD declines below this level, it will move towards the support at the 20 EMA at 1.2650.

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