USD/CAD Daily Forecast – U.S. Dollar Rebounds Against Canadian Dollar
Canadian Dollar Retreats As WTI Oil Moves Below The $75 Level
USD/CAD is currently trying to settle above the 20 EMA at 1.2685 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle above the yearly highs near 93.75. In case the U.S. Dollar Index manages to settle above this level, it will get to the test of the next resistance level at 93.90 which will be bullish for USD/CAD.
Today, U.S. reported that CB Consumer Confidence declined from 115.2 in August (revised from 113.8) to 109.3 in September compared to analyst consensus of 114.5. Consumer Confidence took a hit due to the spread of the Delta variant of coronavirus.
Case-Shiller Home Price Index report indicated that home prices grew by 19.9% month-over-month in July, mostly in line with the analyst consensus which called for growth of 20%.
The economic reports had minimal impact on currency dynamics today as foreign exchange market traders focused on U.S. government bond markets. The yield of 10-year Treasuries made an attempt to settle above 1.54% and provided additional support to the U.S. dollar.
Meanwhile, WTI pulled back below the $75 level after an unsuccessful attempt to settle above yearly highs, which was bearish for commodity-related currencies, including Canadian dollar.
USD to CAD is currently testing the resistance at the 20 EMA at 1.2685. In case this test is successful, USD to CAD will get to the test of the next resistance at 1.2710.
A move above the resistance at 1.2710 will open the way to the test of the resistance at 1.2730. In case USD to CAD manages to settle above this level, it will head towards the next resistance level which is located at 1.2760.
On the support side, the nearest support level for USD to CAD is located at 1.2650. If USD to CAD gets back below this level, it will move towards the 50 EMA at 1.2630. A successful test of the support at the 50 EMA will push USD to CAD towards the support at 1.2590.
For a look at all of today’s economic events, check out our economic calendar.