USD/CAD Daily Forecast – Test Of Resistance At 1.2385
U.S. Dollar Continues To Move Higher Against Canadian Dollar
USD/CAD is currently trying to settle above the resistance at 1.2385 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle above the resistance at 92.15 but failed to develop sufficient upside momentum and declined towards 92. A move above the resistance at 92.15 will push the U.S. Dollar Index towards the resistance at the recent highs at 92.40 which will be bullish for USD/CAD.
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Today, foreign exchange market traders had a chance to take a look at housing market data from U.S. Case-Shiller Home Price Index increased by 2.1% month-over-month in April compared to analyst forecast which called for growth of 1.9%. On a year-over-year basis, Case-Shiller Home Price Index grew by 14.9%.
CB Consumer Confidence report for June indicated that Consumer Confidence improved from 120 (revised from 117.2) to 127.3 compared to analyst consensus of 119.
It looks that worries about the Delta variant of coronavirus have put additional pressure on commodity-related currencies today so Canadian dollar and Australian dollar moved lower against U.S. dollar.
Technical Analysis
USD to CAD managed to settle above the resistance at 1.2350 and is testing the next resistance level at 1.2385. In case this test is successful, USD to CAD will move towards the next resistance level at 1.2420.
A move above this level will open the way to the test of the resistance at 1.2450. In case USD to CAD gets above the resistance at 1.2450, it will move towards the resistance at 1.2480.
On the support side, the previous resistance at 1.2350 will serve as the first support level for USD to CAD. If USD to CAD declines below this level, it will head towards the support at 1.2325.
A move below the support at 1.2325 will push USD to CAD towards the support at 1.2300. In case USD to CAD manages to settle below this level, it will head towards the next support which is located at the 20 EMA at 1.2275.
For a look at all of today’s economic events, check out our economic calendar.