USD/CAD Daily Forecast – Test Of Support At 1.2400

By:

Published: Apr 27, 2021, 16:40 UTC

USD/CAD faced resistance near 1.2425 and is trying to settle below the support at 1.2400.

USD/CAD Daily Forecast – Test Of Support At 1.2400

Canadian Dollar Is Mostly Flat Against U.S. Dollar

USD/CAD continues its attempts to settle below 1.2400 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made several attempts to settle above the resistance at the 91 level but did not manage to gain sufficient upside momentum and remained in the range between the support at 90.70 and the resistance at 91. If the U.S. Dollar Index gets above the high end of this range, it will move towards the resistance at 91.30 which will be bullish for USD/CAD.

Today, U.S. reported that CB Consumer Confidence increased from 109 in March (revised from 109.7) to 121.7 in April compared to analyst consensus of 113. The recent stimulus package has provided significant support to Consumer Confidence.

Foreign exchange market traders also took a look at Case-Shiller Home Price Index report which indicated that home prices increased by 1.2% month-over-month in February after growing by 0.9% in January.

Technical Analysis

USD to CAD made an attempt to get to the test of the resistance level at 1.2425 but failed to develop sufficient upside momentum and pulled back towards the support at 1.2400. Currently, USD to CAD is trying to settle below this support level.

In case this attempt is successful, it will head towards the next support which is located at the recent lows at 1.2385. A successful test of the support at 1.2385 will push USD to CAD towards the support which is located at March lows at 1.2365. A move below this level will open the way to the test of the support at 1.2350.

On the upside, USD to CAD needs to settle above the resistance at 1.2425 to have a chance to develop upside momentum in the near term. If USD to CAD gets above this level, it will head towards the resistance at 1.2450. A move above this level will push USD to CAD towards the resistance at 1.2470.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.