USD/CAD Daily Forecast – Strong Commodity Markets Push Canadian Dollar To Multi-Week Highs
USD/CAD Video 26.04.21.
U.S. Dollar Is Under Strong Pressure
USD/CAD is currently trying to settle below 1.2400 while the U.S. dollar is gaining some ground against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 91 level but failed to develop sufficient upside momentum. As a result, the U.S. Dollar Index remains in the range between the support at 90.70 and the resistance at 91. If the U.S. Dollar Index gets above the resistance at 91, it will head towards the next resistance at 91.30 which may provide some support to USD/CAD.
Strong commodity markets provided significant support to commodity-related currencies, including Canadian dollar, during the current trading session. While oil is under some pressure due to problems with coronavirus in India, other commodities are moving higher, and copper managed to get to highs not seen since 2011.
Today, foreign exchange market traders had a chance to take a look at the latest Durable Goods Orders data from the U.S. The report indicated that Durable Goods Orders increased by 0.5% month-over-month in March compared to analyst consensus which called for growth of 2.5%.
Technical Analysis
USD to CAD gained strong downside momentum and managed to settle below the support at 1.2425. Currently, USD to CAD is trying to settle below the support at 1.2400. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If USD to CAD settles below the support at 1.2400, it will get to another test of the support which has emerged at 1.2385. A move below this level will push USD to CAD towards the support at 1.2365. If USD to CAD declines below this level, it will move towards the next support at 1.2350.
On the upside, previous support level at 1.2425 will likely serve as the first resistance level for USD to CAD. In case USD to CAD manages to settle above this level, it will head towards the next resistance at 1.2450. A successful test of this level will open the way to the test of the resistance at 1.2470.
For a look at all of today’s economic events, check out our economic calendar.