USD/CAD Daily Forecast – Test Of Support At 1.2675
Canadian Dollar Is Mostly Flat Against U.S. Dollar
USD/CAD is trading near the support level at 1.2675 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get to the test of the resistance at the 97 level. In case this attempt is successful, USD/CAD will get more support.
Today, foreign exchange market traders focused on economic data from the U.S. Initial Jobless Claims declined from 270,000 (revised from 268,000) to 199,000 compared to analyst consensus of 260,000.
Durable Goods Orders declined by 0.5% month-over-month in October after falling by 0.4% in September. The second estimate of the third-quarter GDP Growth Rate indicated that GDP grew by 2.1% compared to analyst consensus of 2.2%.
Personal Income and Personal Spending reports exceeded analyst expectations. Personal Income increased by 0.5% month-over-month in October, while Personal Spending grew by 1.3%. New Home Sales increased by 0.4% compared to analyst consensus which called for a decline of 2%.
The final reading of Michigan Consumer Sentiment report has also exceeded expectations. Consumer Sentiment declined from 71.7 in October to 67.4 in November compared to analyst consensus of 66.9.
Demand for the American currency remained strong after the release of economic reports, and the U.S. dollar moved to new highs against a broad basket of currencies.
USD to CAD is currently trying to settle below the support level at 1.2675. In case this attempt is successful, USD to CAD will move towards the next support at 1.2650.
A move below the support at 1.2650 will push USD to CAD towards the support at 1.2625. In case USD to CAD manages to settle below this level, it will head towards the support at 1.2590.
On the upside, the nearest resistance level for USD to CAD is located at 1.2700. If USD to CAD gets back above this level, it will move towards the next resistance level at 1.2730. A successful test of this resistance level will open the way to the test of the resistance at 1.2760.
For a look at all of today’s economic events, check out our economic calendar.