USD/CAD Daily Forecast – U.S. Dollar Rebounds After Sell-Off
USD/CAD Video 06.08.20.
Canadian Dollar Loses Ground As Oil Fails To Develop Upside Momentum
USD/CAD is rebounding as the U.S. dollar is gaining ground against a broad basket of currencies while WTI oil is under pressure after it failed to settle above the resistance level at $42.50.
U.S. Dollar Index has found material support near 92.50 and is trying to settle above the 93 level.
Today, the U.S. has provided Initial Jobless Claims and Continuing Jobless Claims reports.
Initial Jobless Claims declined to 1.19 million while analysts projected that they will stay above 1.4 million. Continuing Jobless Claims fell from 17 million to 16.1 million.
Better-than-expected employment reports provided additional support to the U.S. dollar. However, dollar bulls will likely remain nervous since U.S. Republicans and Democrats continue their negotiations on the next coronavirus aid package.
In case no consensus is reached, U.S. Donald Trump will likely use executive orders to extend unemployment benefits but a more comprehensive stimulus will likely be impossible without a deal between Republicans and Democrats.
Tomorrow, Canada will provide its employment reports for July. The Employment Change report is projected to show that the economy added 400,000 jobs in July. Unemployment Rate is expected to decline from 12.3% in June to 11% in July.
The U.S. will also provide several employment reports on Friday. Non Farm Payrolls report is projected to show that 1.6 million jobs were added in July while Unemployment Rate is expected to fall from 11.1% in June to 10.5% in July.
Technical Analysis
Currently, USD to CAD is trying to settle above 1.3300. If this attempt is successful, USD to CAD will head towards the test of the nearest resistance level at 1.3330.
In case USD to CAD manages to get above 1.3330, it will likely gain additional upside momentum and move towards the next resistance at the 20 EMA at 1.3410.
On the support side, the nearest support level for USD to CAD is located at 1.3270.
A move below this support level will open the way to the test of the next support level at the recent lows at 1.3235.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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