USD/CAD Daily Forecast – U.S. Dollar Did Not Continue Its Rebound

U.S. Dollar Is Flat Against Canadian Dollar

USD/CAD remains stuck in the range between the support at 1.2450 and the resistance at 1.2480 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index declined below the support level at 94.20 and is trying to get below the next support level at 94. In case this attempt is successful, the U.S. Dollar Index will move towards the support at 93.75 which will be bearish for USD/CAD.

No important economic reports are scheduled to be released in the U.S. and Canada today so foreign exchange market traders will focus on general market sentiment and the dynamics of commodity markets.

WTI oil managed to settle above the 20 EMA at $81.25 and is trying to settle above the $82 level. In case this attempt is successful, WTI oil will head towards the recent highs near $82.50 which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD has recently made an attempt to get to the test of the resistance at the 50 EMA at 1.2480 but failed to develop sufficient upside momentum and pulled back towards the nearest support level at 1.2450.

In case USD to CAD declines below the support at 1.2450, it will move towards the next support which is located at the 20 EMA at 1.2425. A move below the 20 EMA will push USD to CAD towards the support level at 1.2400. If USD to CAD manages to settle below 1.2400, it will head towards the support at 1.2380.

On the upside, USD to CAD needs to settle above the 50 EMA at 1.2480 to have a chance to continue its rebound. If USD to CAD gets above this level, it will move towards the resistance at 1.2500.

A move above 1.2500 will open the way to the test of the next resistance level at 1.2530. In case USD to CAD settles above 1.2530, it will head towards the resistance at 1.2550.

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