USD/CAD Daily Forecast – U.S. Dollar Tries To Rebound After Sell-Off

USD/CAD Video 10.11.20.

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD tries to rebound after yesterday’s sell-off while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently stuck near 92.75 after several unsuccessful attempts to settle above the resistance at 93. If the U.S. Dollar Index finally manages to get above the 93 level, it will gain upside momentum and head towards the 20 EMA at 93.15 which will be bullish for USD/CAD.

Meanwhile, oil prices are near the $41 level but this upside move fails to provide support to commodity-related currencies like the Canadian dollar. Most likely, yesterday’s move was too big and additional catalysts are needed for the continuation of the downside trend in USD/CAD.

Today, U.S. and Canada did not provide important economic reports so traders have mostly focused on general market sentiment. Today’s global market action is mixed after yesterday’s major upside move, and USD/CAD lacked direction during the current trading session.

Technical Analysis

USD to CAD is currently trying to stay above the nearest support level at 1.3000. It has already tested the nearest resistance level at 1.3050 but failed to gain sufficient upside momentum and declined closer to 1.3000.

In case USD to CAD manages to stay above 1.3000, it will move towards another test of the resistance at 1.3050. A move above 1.3050 will push USD to CAD towards the next resistance at 1.3080.

If USD to CAD gets above 1.3080, it will head towards the significant resistance level at 1.3100. A successful test of this level will open the way to the test of the next resistance near the 20 EMA at 1.3135.

On the support side, USD to CAD needs to get back below the support at 1.3000 to gain additional downside momentum. In this case, USD to CAD will continue its downside move and head towards the next support level at 1.2965. A move below the support at 1.2965 will push it towards the recent lows at 1.2930.

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