USD/CAD Video 25.09.20.
Canadian Dollar Remains Under Pressure
USD/CAD is trying to develop upside momentum above the nearest resistance level at 1.3400 as the U.S. dollar continues to gain ground against a broad basket of currencies.
The U.S. Dollar Index managed to get above the significant resistance level at 94.65 and continues its upside move. If the U.S. Dollar Index moves towards the 95 level, USD/CAD will get additional support.
WTI oil continues to trade near the $40 level but fails to provide any support to Canadian dollar.
Today, U.S. reported that Durable Goods Orders increased by 0.4% which was significantly lower than the analyst consensus of 1.5%. While this news is not inspiring, the U.S. dollar gained additional ground as traders increased their purchases of safe haven currencies.
At this point, the upside trend of the U.S. dollar looks strong, and the Canadian dollar will need some positive catalysts to have a chance to rebound against the American currency.
There are no notable reports scheduled to be released in Canada in the upcoming days so USD/CAD will remain in the hands of general market sentiment and data from U.S. If the flight from risk continues, the U.S. dollar will have a chance to gain more ground against the Canadian dollar.
USD to CAD managed to get above the resistance at 1.3400 and is moving towards the next resistance level at 1.3450.
If the test of the resistance at 1.3450 is successful, USD to CAD will head towards the major resistance level at 1.3500. This level served as strong support for USD to CAD back in June – July so I’d expect a lot of interest at 1.3500.
In case USD to CAD manages to settle above 1.3500, it will move towards the next resistance at 1.3610.
On the support side, a move below 1.3400 will open the way to the test of the support level at 1.3330.
If USD to CAD gets below the support at 1.3330, it will gain additional downside momentum and head towards the next support level at the 50 EMA at 1.3265.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – Stock Markets Showing Signs of Stability
- Oil Little Changed Ahead Of The Weekend
- S&P 500 Weekly Price Forecast – Find Footing Late in the Week
- Crude Oil Price Forecast – Crude Oil Continue to Put Traders to Sleep
- GBP/JPY Weekly Price Forecast – British Pound Looking for Support
- Silver Price Forecast – Silver Markets Continue to Try and Build Base