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USD/CAD Daily Forecast – U.S. Dollar Tries To Move Higher Against Canadian Dollar

By:
Vladimir Zernov
Published: Mar 8, 2021, 17:21 UTC

USD/CAD received support at 1.2625 and is trying to settle back above the 20 EMA.

USD/CAD

In this article:

USD/CAD Video 08.03.21.

Canadian Dollar Is Losing Some Ground At The Beginning Of The Week

USD/CAD is currently trying to get back above the 20 EMA at 1.2665 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 92.25 and is heading towards the next resistance level at 92.50. If the U.S. Dollar Index gets to the test of the resistance at 92.50, USD/CAD will get additional support.

There are no important economic reports scheduled to be released in the U.S. and Canada today so foreign exchange market traders are focused on U.S. Treasury yields and general market sentiment.

Treasury yields continues to move higher as bond traders sell U.S. government bonds on worries about higher inflation. The U.S. Senate has recently passed the $1.9 trillion coronavirus aid bill, and the market expects that $1,400 stimulus checks and other measures will lead to higher inflation.

Rising yields helped U.S. dollar to move higher against a broad basket of currencies in recent trading sessions but USD/CAD failed to gain significant upside momentum as Canadian dollar was supported by strong commodity markets.

Technical Analysis

usd cad march 8 2021

USD to CAD is currently testing the 20 EMA level at 1.2665. In case this test is successful, USD to CAD will move towards the next resistance level at 1.2700.

This resistance level has already been tested during the current trading session and proved its strength. In case USD to CAD gets above the resistance at 1.2700, it will test the next resistance level which is located at the 50 EMA at 1.2710. If USD to CAD settles above the 50 EMA, it will head towards the resistance at 1.2750.

On the support side, a move below the 20 EMA at 1.2665 will open the way to the test of the support at 1.2625 which has also been tested during the current trading session. In case USD to CAD declines below this level, it will move towards the next support level at 1.2590.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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