USD/CAD Daily Forecast – Test Of Resistance At 1.2825
U.S. Dollar Is Mostly Flat Against Canadian Dollar
USD/CAD continues its attempts to settle above the resistance at 1.2825 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index is located near the support level at 96. In case the U.S. Dollar Index manages to settle back above this level, it will head towards the resistance level at 96.25 which will be bullish for USD/CAD.
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Today, U.S. released Initial Jobless Claims report which indicated that 222,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 240,000. Continuing Jobless Claims decreased from 2.06 million (revised from 2.05 million) to 1.96 million compared to analyst consensus of 2 million.
Canada released the third-quarter GDP Growth Rate report which indicated that GDP increased by 1.3% quarter-over-quarter compared to analyst forecast which called for growth of 0.5%.
Foreign exchange market traders also focused on the dynamics of oil markets. OPEC+ decided to proceed with its plans to increase production by 400,000 barrels per day (bpd) in January. WTI oil found itself under pressure and declined to $62.50 after this decision was announced. However, it managed to find support and rebounded towards the $67 level. This rebound may provide some support to Canadian dollar and other commodity-related currencies.
Technical Analysis
USD to CAD is trying to climb above the resistance at 1.2825. If USD to CAD manages to settle above this level, it will head towards the resistance at 1.2850.
A successful test of the resistance at 1.2850 will push USD to CAD towards the resistance at 1.2890. In case USD to CAD moves above this level, it will head towards the next resistance level at 1.2915.
On the support side, the nearest support level for USD to CAD is located at 1.2800. If USD to CAD declines below this level, it will head towards the support at 1.2780.
A move below 1.2780 will open the way to the test of the next support level which is located at 1.2760. If USD to CAD declines below 1.2760, it will head towards the support at 1.2730.
For a look at all of today’s economic events, check out our economic calendar.