USD / CAD Daily Forecasts – The Canadian Dollar Is Under Pressure As The Week Begins


The US dollar gains ground against the Canadian dollar

USD / CAD attempted to move above resistance at 1.2900 but lost momentum and moved lower towards 1.2830 as US dollar lost momentum against a large basket of currencies .

The US dollar index faced strong resistance at 93.40 and fell to 93.20. The closest support level for the US dollar index is located at 93.10. If the US dollar index drops below this level, it will head to the support at 92.80 which will be bearish for the USD / CAD.

As it is election day in Canada, forex traders focused on general market sentiment and dynamics in commodity markets which were under pressure due to fears over the Chinese financial problems. Evergrande.

The US dollar was gaining ground against a large basket of currencies as demand for safe-haven assets increased. However, traders weren’t ready to push the US currency to annual highs as they remained cautious ahead of the Fed meeting.

Meanwhile, the Canadian dollar was under pressure as WTI oil tried to stabilize below the psychologically important level of $ 70. If WTI oil moves below this level, it will head towards the 50 ERA at 69.40 which will be bearish for commodity currencies including the Canadian dollar.

The USD against CAD is currently trying to move back above 1.2830. The RSI is close to overbought territory, but there is enough room for some upside momentum in case the right catalysts emerge.

If the USD versus CAD manages to stabilize above 1.2830, it will head to the next resistance level at 1.2850. A successful test of this level will pave the way for testing the resistance at 1.2865. If the USD against the CAD breaks above 1.2865, it will head to the next resistance at 1.2900.

On the support side, a move below 1.2830 will push the USD towards the CAD towards the support at 1.2785. In case the USD to CAD drops below 1.2785, it will head towards the support at 1.2760. A break below 1.2760 will pave the way for testing the support at 1.2730.

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

About Rodney Fletcher

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