USD/CAD Daily Forecast – Test Of Support At 1.2985

USD/CAD Video 27.11.20.

U.S. Dollar Slips To Yearly Lows

USD/CAD is currently testing the support at 1.2985 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the support at the yearly lows at 91.75. If the U.S. Dollar Index manages to settle below this level, it will gain downside momentum and head towards the 91 level although it may receive some support at higher levels. This scenario will be bearish for USD/CAD.

Today, U.S. and Canada did not release important economic reports so foreign exchange market traders focused on the general sentiment towards U.S. dollar. It look like the recent U.S. Initial Jobless Claims report, which indicated that 778,000 Americans filed for unemployment benefits in a week, put additional pressure on the American currency.

The current trading session is relatively calm as many traders have not yet returned to their desks as they continue to enjoy holidays, so the U.S. dollar may not have enough momentum to settle below the strong support at the yearly lows. However, the pressure on the American currency may intensify on Monday.

Technical Analysis

USD to CAD is currently trying to settle below the nearest support level at 1.2985. USD to CAD has recently managed to get below this level but failed to develop sufficient downside momentum.

If USD to CAD settles below the support at 1.2985, it will continue its downside move and head towards the next support level at November lows at 1.2930. A move below 1.2930 will open the way to the test of the next support level at 1.2900.

On the upside, USD to CAD needs to get back above 1.3000 to have a chance to develop upside momentum. The next resistance level for USD to CAD has emerged at 1.3025.

In case USD to CAD gets above the resistance at 1.3025, it will head towards the next resistance level at 1.3050. A move above 1.3050 will push USD to CAD towards the resistance at the 20 EMA at 1.3075.

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