USD/CAD Daily Forecast – Test Of Resistance At 1.2775

USD/CAD Video 11.12.20.

Canadian Dollar Moves Lower Against U.S. Dollar

USD/CAD rebounds after yesterday’s sell-off while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is once again testing the nearest resistance level at 91. This level remains a serious obstacle on the way up for the U.S. Dollar Index. If the U.S. Dollar Index gets above this level, it will gain upside momentum and move towards 91.50 which will provide additional support to USD/CAD.

Today, foreign exchange market traders focus on Brexit news. Problems in negotiations between EU and UK provided some support to safe-haven U.S. dollar, although the gains of the American currency were limited.

Oil pulled back after yesterday’s upside move and put some pressure on commodity-related currencies including Canadian dollar.

Today, U.S. and Canada released data on producer prices in November which was mostly in line with analysts estimates. Most likely, USD/CAD traders will focus on major developments like Brexit or U.S. stimulus negotiations in the upcoming trading sessions as these catalysts have the potential to move currency markets.

Technical Analysis

USD to CAD is currently testing the nearest resistance level at 1.2775. If USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2800.

A move above the resistance at 1.2800 will push USD to CAD towards the next resistance level at 1.2835. The previous attempt to rebound was stopped at 1.2835, and USD to CAD will likely face material resistance at this level.

If USD to CAD gets above 1.2835, it will gain additional upside momentum and head towards the next resistance at 1.2860.

On the support side, the nearest support level is located at 1.2750. A move below this level will push USD to CAD to the next support at the lows of today’s trading session at 1.2720.

If USD to CAD declines below this level, it will head towards the support at 1.2700. A successful test of this level will open the way to the next support level at 1.2675.

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