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

USD/CAD Video 06.04.21.

Canadian Dollar Is Losing Some Ground Against U.S. Dollar

USD/CAD is currently trying to settle above 1.2550 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at 92.50 and is testing the next support level which is located at the 20 EMA at 92.35. In case the U.S. Dollar Index manages to settle below this level, it will head towards the next support at 92.15 which will be bearish for USD/CAD.

No important economic reports are scheduled to be released in the U.S. and Canada today so foreign exchange market traders will stay focused on general market sentiment and dynamics of commodity markets.

WTI oil rebounded towards the psychologically important $60 level but this move failed to provide additional support to Canadian dollar.

Meanwhile, Treasury yields continue to move lower as investors increase their exposure to U.S. government bonds. If this pullback continues, the U.S. dollar will find itself under more pressure.

Technical Analysis

USD to CAD has recently made an attempt to settle above the 20 EMA at 1.2565 but lost momentum and pulled back below 1.2550. In case USD to CAD settles below this level, it will move towards the support at 1.2525. This support level has been tested during the current trading session and proved its strength.

In case USD to CAD declines below 1.2525, it will head towards the support at 1.2500. A successful test of the support at 1.2500 will open the way to the test of the support at 1.2470. If USD to CAD gets below this level, it will move towards the support at 1.2450.

On the upside, the nearest resistance for USD to CAD is located at the 20 EMA at 1.2565. A move above this level will push USD to CAD towards the resistance at 1.2590. In case USD to CAD manages to settle above the resistance at 1.2590, it will head towards the next resistance level which is located at the 50 EMA at 1.2605.

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