USD/CAD Daily Forecast – Test Of Support At 1.2310
USD/CAD settled below 1.2350 and is trying to settle below the next support at 1.2310.
USD/CAD Video 29.04.21.
U.S. Dollar Remains Under Pressure Against Canadian Dollar After Yesterday’s Sell-Off
USD/CAD is currently trying to settle below the support at 1.2310 while the U.S. dollar is gaining ground against a broad basket of currencies.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The U.S. Dollar Index failed to settle below the support at 90.50 and rebounded towards the resistance at 90.70. Currently, the U.S. Dollar Index is trying to settle above this level. In case this attempt is successful, the U.S. Dollar Index will move towards the next resistance at the 91 level which will be bullish for USD/CAD.
Today, the U.S. reported that Initial Jobless Claims declined from 566,000 (revised from 547,000) to 553,000 compared to analyst consensus of 549,000. Continuing Jobless Claims increased from 3.65 million (revised from 3.67 million) to 3.66 million compared to analyst consensus of 3.61 million. The reports supported Fed’s view that job market remained far from full recovery.
Foreign exchange market traders also had a chance to take a look at GDP Growth Rate report which showed that GDP grew by 6.4% quarter-over-quarter in the first quarter compared to analyst consensus of 6.1%.
The U.S. economy rebounds at a robust pace, and some traders and analysts are already worried that the fast pace of this rebound will lead to high inflation. The Fed does not look worried about inflation, but Treasury yields have been moving higher in recent trading sessions, which can provide more support to the American currency.
Technical Analysis
USD to CAD remains under pressure and is trying to settle below the support at 1.2310. In case this attempt is successful, it will move towards the next support level at 1.2280.
A successful test of the support at 1.2280 will open the way to the test of the next support at 1.2250. If USD to CAD declines below 1.2250, it will move towards the support level which is located at 1.2220.
On the upside, a move above 1.2310 will open the way to the test of the resistance at 1.2350. If USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2365. A move above this level will push USD to CAD towards the resistance at 1.2385.
For a look at all of today’s economic events, check out our economic calendar.
