USD/CAD Daily Forecast – Canadian Dollar Is Losing Ground Against U.S. Dollar
USD/CAD Video 25.05.21.
U.S. Dollar Gains Some Ground Against Canadian Dollar
USD/CAD did not manage to settle below the support at 1.2040 and moved back towards the resistance at 1.2065 while the U.S. dollar remained under pressure against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to get to the test of the support level at 89.50 but lost momentum and returned to 89.75. If the U.S. Dollar Index settles back above 89.75, it will head towards the resistance at the 90 level which will be bullish for USD/CAD.
Today, U.S. reported that Case-Shiller Home Price Index increased by 2.2% month-over-month in March compared to analyst forecast which called for growth of 0.9%. On a year-over-year basis, Case-Shiller Home Price Index increased by 13.3%.
New Home Sales declined by 5.9% month-over-month in April compared to analyst forecast which called for a decline of 10%. Interestingly, New Home Sales report for March was revised from 20.7% to 7.4%.
Foreign exchange market traders also had a chance to take a look at CB Consumer Confidence report for May which showed that Consumer Confidence decreased from 117.5 (revised from 121.7) to 117.2 compared to analyst consensus of 119.2.
Technical Analysis
USD to CAD is currently trying to settle above the resistance at 1.2065. The next resistance level is located at 1.2080. In case USD to CAD gets above this level, it will move towards the resistance at 1.2100.
A successful test of the resistance at 1.2100 will open the way to the test of the next resistance level at 1.2130. If USD to CAD manages to settle above the resistance at 1.2130, it will head towards the resistance level which is located at the 20 EMA at 1.2145.
On the support side, a move below 1.2065 will open the way to the test of the support at 1.2040. This support level has been tested several times during recent trading sessions and proved its strength. If USD to CAD gets below the support at 1.2040, it will head towards the support at 1.2000.
For a look at all of today’s economic events, check out our economic calendar.