USD/CAD Daily Forecast – U.S. Dollar Gains Some Ground Against Canadian DollarUSD/CAD failed to settle below 1.2500 and is trying to settle above the resistance at 1.2525.
USD/CAD Video 19.04.21.
Canadian Dollar Is Losing Ground Against U.S. Dollar
USD/CAD is currently trying to settle back above 1.2525 while the U.S. dollar is losing ground against a broad basket of currencies.
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The U.S. Dollar Index settled below the support at 91.30 and tried to get below the next support level at 91. A move below this level will push the U.S. Dollar Index towards the support at 90.70 which will be bearish for USD/CAD.
Today, Canada’s Housing Starts report indicated that Housing Starts increased by 21.6% month-over-month and reached a record high of 335,200 in March. Analysts expected that Housing Starts would total 250,000. Interestingly, the strong report did not provide additional support to the Canadian dollar.
This week, foreign exchange market traders will focus on Bank of Canada Interest Rate Decision which will be released on Wednesday. The rate is expected to stay unchanged, and the market will pay close attention to Bank’s commentary.
Traders will be especially interested in the pace of asset purchases as some analysts believe that Bank of Canada will reduce the pace of bond buying, which will likely serve as a supportive catalyst for the Canadian dollar.
USD to CAD managed to get above 1.2525 and is trying to develop additional upside momentum. The next resistance level for USD to CAD is located at the 20 EMA at 1.2545.
If USD to CAD manages to settle above the 20 EMA at 1.2545, it will head towards the next resistance level at 1.2565. A successful test of the resistance at 1.2565 will open the way to the test of the resistance at the 50 EMA at 1.2585.
On the support side, a move below 1.2525 will push USD to CAD towards the support at 1.2500. In case USD to CAD declines below this level, it will head towards the support at 1.2470. This support level has been recently tested and proved its strength. If USD to CAD gets below the support at 1.2470, it will move towards the support at 1.2450.
For a look at all of today’s economic events, check out our economic calendar.