USD/CAD Stays Stuck In The 1.2730 – 1.2760 Range

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD has recently made another attempt to settle above the resistance at 1.2760 but failed to develop sufficient upside momentum and pulled back while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index made several attempts to settle above the 96 level but these attempts were not successful. The nearest support for the U.S. Dollar Index is located at the 50 EMA near 95.80. If the U.S. Dollar Index gets to the test of this level, USD/CAD may find itself under more pressure.

Today, foreign exchange market traders will focus on general market sentiment and commodity markets as the U.S. markets are closed due to Washington’s Birthday holiday.

Markets remain nervous due to geopolitical tensions, but it is not clear whether demand for safe-haven assets is growing as the U.S. dollar is losing some ground while gold stays mostly flat.

Meanwhile, WTI oil managed to get back above the $92 level and is trying to gain additional upside momentum. In case this attempt is successful, it will head towards the resistance near $93.30 which will be bullish for commodity-related currencies, including Canadian dollar.

Technical Analysis

USD to CAD tested the resistance at 1.2760 but failed to develop sufficient upside momentum and continues to trade in the 1.2730 – 1.2760 range. In case USD to CAD gets above 1.2760, it will head towards the resistance at 1.2780.

A successful test of the resistance at 1.2780 will push USD to CAD towards the next resistance at 1.2800. If USD to CAD moves above this level, it will head towards the resistance which is located at 1.2830.

On the support side, the nearest support level is located at 1.2730. In case USD to CAD gets below this level, it will head towards the 20 EMA at 1.2715. A move below the 20 EMA will open the way to the test of the support at the 50 EMA at 1.2695.

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