USD/CAD Daily Forecast – Test Of Support At 1.2350

USD/CAD Video 28.04.21.

U.S. Dollar Is Under Pressure Against Canadian Dollar

USD/CAD is currently trying to settle below the support at 1.2350 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently declined below the support at the 91 level and is moving towards the next support at 90.70. In case the U.S. Dollar Index gets to the test of this level, USD/CAD will find itself under more pressure.

Today, Canada reported that Retail Sales increased by 4.8% month-over-month in February compared to analyst consensus which called for growth of 4%. On a year-over-year basis, Retail Sales grew by 6%.

Currently, foreign exchange market traders are waiting for the Fed Interest Rate Decision and the subsequent commentary. Treasury yields are gaining ground ahead of Fed’s commentary, but the real action for currency and bond traders will begin after the release of Fed’s comments. If Treasury yields gain more upside momentum, the U.S. dollar should get more support.

Technical Analysis

USD to CAD declined below the support at 1.2365 and is testing the next support level at 1.2350. RSI is getting closer to the oversold territory, but there is still plenty of room to gain additional downside momentum in case the right catalysts emerge.

If USD to CAD settles below the support at 1.2350, it will head towards the next support level which is located at 1.2310.  A successful test of this level will open the way to the test of the next support at 1.2280.

On the upside, the previous support at 1.2365 will serve as the first resistance level for USD to CAD. In case USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2385.

A move above the resistance at 1.2385 will push USD to CAD towards the resistance at 1.2400. If USD to CAD gets above 1.2400, it will head towards the resistance level which is located at 1.2425.

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