USD/CAD Daily Forecast – Test Of Support At 1.3050
USD/CAD Video 05.11.20.
U.S. Dollar Is Under Serious Pressure
USD/CAD is currently trying to settle below the support level at 1.3050 as the U.S. dollar continues to lose ground against a broad basket of currencies.
Your capital is at risk
The U.S. Dollar Index has recently made an attempt to settle below the support level at 92.50. Yesterday, the U.S. Dollar Index tested the resistance at 94.30, so the recent downside move was very strong. If the U.S Dollar Index settles below 92.50, it will gain additional downside momentum and head towards the next support level at 92.10 which will be bearish for USD/CAD.
The U.S. has recently reported that Initial Jobless Claims declined from 758,000 (revised from 751,000) to 751,000 while Continuing Jobless Claims dropped from 7.82 million (revised from 7.76 million) to 7.26 million. Both reports were worse than analyst expectations.
Today, USD/CAD traders will focus on the U.S. Fed Interest Rate Decision. While the rate is expected to stay unchanged, the Fed’s commentary may have a big impact on the trading dynamics of the American currency. In addition, traders will continue to monitor the latest developments at U.S. presidential elections.
Tomorrow, Canada will provide Unemployment Rate and Employment Change reports for October. Unemployment Rate is expected to decline from 9% to 8.8% while Employment Change is projected to drop from 378,000 to 100,000.
Technical Analysis
USD to CAD gained strong downside momentum and is trying to settle below the support level at 1.3050. If this attempt is successful, USD to CAD will move towards the next support level at 1.3000.
A move below the support at 1.3000 will signal that USD to CAD is ready to continue its downside trend. In this case, USD to CAD will head towards the next support level at 1.2965.
On the upside, USD to CAD must get back above 1.3050 to have a chance to develop upside momentum. The next resistance level is located at 1.3080. If USD to CAD settles above this level, it will get to the test of the resistance at 1.3100. A move above the resistance at 1.3100 will open the way to the next resistance level at 1.3135.
For a look at all of today’s economic events, check out our economic calendar.