USD/CAD Daily Forecast – U.S. Dollar Rebounds After Recent Pullback

U.S. Dollar Gains Ground Against Canadian Dollar

USD/CAD is currently trying to settle back above the resistance at 1.2825 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index tested both the nearest support level at 96 and the nearest resistance level at 96.25, but failed to get out of the 96 – 96.25 range. In case the U.S. Dollar Index settles below 96, it will gain downside momentum and move towards the next support at 95.75 which will be bearish for USD/CAD.

Today, foreign exchange market traders had a chance to take a look at Case-Shiller Home Price Index report for October. The report indicated that Case-Shiller Home Price Index increased by 0.8% month-over-month compared to analyst forecast which called for growth of 1.1%. On a year-over-year basis, Case-Shiller Home Price Index grew by 18.4% compared to analyst consensus of 18.5%.

Technical Analysis

USD to CAD managed to get back above 1.2800 and is testing the resistance level at 1.2825. In case USD to CAD gets above the resistance at 1.2825, it will gain additional upside momentum and head towards the next resistance level which is located at 1.2850.

If USD to CAD moves above 1.2850, it will head towards the next resistance level at 1.2890. A successful test of this resistance level will open the way to the test of the next resistance at 1.2915.

On the support side, the previous resistance at 1.2800 will serve as the first support level for USD to CAD. The 20 EMA is located in the nearby, but USD to CAD has easily moved through it in recent days, so it remains to be seen whether traders will pay attention to this level.

A move below the support at 1.2800 will push USD to CAD back towards the support at 1.2780. In case USD to CAD declines below 1.2780, it will head towards the next support at 1.2760. A successful test of this level will open the way to the test of the support at 1.2730.

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