USD / CAD Daily Forecast – US Dollar Bounces Back From Recent Pullback


The Canadian dollar loses ground against the US dollar

The USD / CAD is currently attempting to move above the resistance at 1.2825 as the US Dollar moves higher against a large basket of currencies.

The US dollar index has managed to get back above the resistance at 96.25 and is trying to test the next resistance level which is at 96.50. A move above 96.50 will pave the way for testing the resistance at 96.70 which will be bullish for USD / CAD.

No major economic reports are expected today in the US and Canada, so forex traders will focus on general market sentiment and the dynamics of commodity markets.

WTI oil recently attempted to stabilize below the $ 70 level as traders remained concerned about the Omicron spread. If WTI Oil manages to stabilize below the psychologically important level of $ 70, it will gain additional bearish momentum that will be bearish for commodity-linked currencies, including the Canadian dollar.

The USD against CAD has managed to get back above 1.2800 and is trying to move above the resistance at 1.2825. If this attempt is successful, the USD to CAD will test the next resistance level which is at 1.2850.

If the USD against CAD moves above the resistance at 1.2850, it will move to the next resistance at 1.2890. A move above this level will push the USD towards the CAD towards the resistance level at 1.2915.

On the support side, a move below 1.2825 will push the USD towards the CAD towards the support level at 1.2800. The RSI is in moderate territory, and there is ample room to gain momentum on the downside and continue the recent pullback.

If the USD to CAD drops below 1.2800, it will move to the next support level at 1.2780. A successful test of this level will push the USD towards the CAD towards support which is near the recent lows at 1.2760.

For an overview of all of today’s economic events, check out our economic calendar.


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