USD/CAD Daily Forecast – Test Of Support At 1.3080

USD/CAD Video 16.11.20.

Canadian Dollar Moves Higher Against U.S. Dollar At The Beginning Of The Week

USD/CAD is currently trying to settle below the support level at 1.3080 as the U.S. dollar is losing ground against a broad basket of currencies on the foreign exchange market.

At this point, the U.S. Dollar Index continues its attempts to settle below the support at 92.60. If the U.S. Dollar Index manages to gain additional downside momentum, it will move towards the support at the recent lows near 92.10 which will be bearish for USD/CAD.

Today, the U.S. reported that NY Empire State Manufacturing Index declined from 10.50 in October to 6.30 in November while analysts expected that it would grow to 12.75.

It looks like the recent surge in the number of new coronavirus cases in the U.S. has put some pressure on the index although it remained in the positive territory.

In Canada, Manufacturing Sales grew by 1.5% month-over-month in September, in line with the analyst consensus.

Today, Canadian dollar received additional support from Moderna‘s vaccine news, which boosted demand for riskier assets, and rising oil prices. If vaccine-related optimism prevails, the U.S. dollar may find itself under more pressure in the upcoming trading sessions.

Technical Analysis

USD to CAD failed to settle above the resistance at the 20 EMA at 1.3130 and gained strong downside momentum. Currently, USD to CAD is trying to settle below the support level at 1.3080.

If this attempt is successful, USD to CAD will move towards the next support at 1.3050. In case USD to CAD gets below this level, it will head towards the major support level at 1.3000.

On the upside, USD to CAD needs to get back above 1.3080 to have a chance to develop upside momentum. The next resistance level for USD to CAD is located at 1.3100.

If USD to CAD settles above this level, it will move towards the next resistance at the 20 EMA at 1.3130. A move above the 20 EMA will signal that USD to CAD is ready to continue its rebound.

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