USD/CAD Daily Forecast – U.S. Dollar Attempts To Rebound Against Canadian Dollar

USD/CAD Video 30.04.21.

Resistance At 1.2310 Stays Strong

USD/CAD has recently made an attempt to settle above the resistance at 1.2310 but failed to develop sufficient upside momentum and pulled back while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the resistance at 91 and made an attempt to settle above the next resistance at 91.30. In case the U.S. Dollar Index settles above this level, it will move towards the 50 EMA at 91.50 which will be bullish for USD/CAD.

Today, the U.S. reported that Personal Income increased by 21.1% month-over-month in March compared to analyst consensus of 20.3%. The huge stimulus package boosted Personal Income and also provided support to Personal Spending which increased by 4.2% compared to analyst consensus which called for growth of 4.1%.

U.S. Consumer Confidence report showed that Consumer Confidence increased from 84.9 in March to 88.3 in April compared to analyst consensus of 87.4.

Foreign exchange market traders also had a chance to take a look at GDP data from Canada which indicated that GDP increased by 0.4% month-over-month in February compared to analyst consensus which called for growth of 0.5%.

Technical Analysis

USD to CAD has recently tested the resistance at 1.2310 but did not manage to develop sufficient upside momentum. In case USD to CAD manages to settle above this level, it will move towards the next resistance which is located at 1.2350.

A successful test of the resistance at 1.2350 will open the way to the test of the next resistance at 1.2365. If USD to CAD gets above this level, it will head towards the next resistance at 1.2385.

On the support side, USD to CAD needs to settle below the support level at 1.2280 to continue its downside move. This support level has already been tested several times and proved its strength.

In case USD to CAD declines below the support at 1.2280, it will head towards the next support at 1.2250. A successful test of the support at 1.2250 will push USD to CAD towards the next support at 1.2220.

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