USD/CAD Moves Lower As WTI Oil Gets Back Above The $91 Level

U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD is currently trying to get back below the support at 1.2680 while the U.S. dollar is under some pressure against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the 50 EMA at 95.75. If the U.S. Dollar Index settles below this level, it will move towards the support level at 95.40 which will be bearish for USD/CAD.

Today, foreign exchange market traders had a chance to take a look at the preliminary reading of Michigan Consumer Sentiment report from the U.S. The report indicated that Consumer Sentiment declined from 67.2 in January to 61.7 in February compared to analyst consensus of 67.5 as rising prices put pressure on consumers’ mood.

Meanwhile, WTI oil managed to get back above the $91 level and made an attempt to settle above the $92 level. In case WTI oil manages to settle above $92, it will gain upside momentum and head towards the recent highs near the $93 level which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD is testing the support at the 50 EMA near 1.2680. In case USD to CAD declines below this level, it will head towards the next support level at 1.2650.

A successful test of the support at 1.2650 wil push USD to CAD towards the next support level at 1.2625. If USD to CAD settles below this level, it will continue its pullback and head towards the support at 1.2590.

On the upside, the nearest resistance level for USD to CAD is located at 1.2710. If USD to CAD gets back above this level, it will move towards the resistance level at 1.2730.

A successful test of the resistance at 1.2730 will open the way to the test of the next resistance at 1.2760. In case USD to CAD moves above this level, it will head towards the next resistance at 1.2780.

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