USD/CAD Daily Forecast – Another Test Of Resistance At 1.2775

USD/CAD Video 14.12.20.

[fx-article-ad]U.S. Dollar Tries To Gain Ground Against Canadian Dollar At The Beginning Of The Week

USD/CAD is currently trying to settle above the resistance at 1.2775 while the U.S. dollar is mostly flat against a broad basket of currencies.

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Today, the U.S. Dollar Index made an attempt to settle below the nearest support level at 90.50 but failed to gain sufficient downside momentum and rebounded closer to 90.75. If the U.S. Dollar Index manages to get above the nearest resistance level at 91, USD/CAD will get additional support.

No important economic reports were released in the U.S. and Canada today so foreign exchange market traders focused on general market mood. Today, some riskier assets got a boost from the beginning of mass vaccination in the U.S.

However, gains of riskier assets were limited as the near-term economic situation remains challenging. In addition, falling oil prices put some pressure on the Canadian dollar and other commodity-related currencies. Oil suffered from the major reduction of OPECs oil demand estimate for the first quarter of 2021.

Technical Analysis

[fx-image src=/2020/12/usd-cad-december-14-2020.jpg data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2020/12/usd-cad-december-14-2020.jpg originalWidth=1218 ratio=2.51]

USD to CAD continues its attempts to settle above the nearest resistance level at 1.2775. If USD to CAD manages to settle above this level, it will get to the test of the resistance level at 1.2800.

If the test of the resistance at 1.2800 is successful, USD to CAD will head towards the resistance at 1.2835. A move above the resistance at 1.2835 will open the way to the test of the next resistance level at 1.2860.

On the support side, the nearest support level for USD to CAD is located at 1.2750. Id note that RSI has left the oversold territory so there is plenty of room to gain downside momentum in case the right catalysts emerge.

In case USD to CAD settles below the support at 1.2750, it will head towards the next support level at 1.2720. This support level has been tested several times during recent trading sessions and proved its strength. A move below this support level will push USD to CAD towards the next support at 1.2700.

For a look at all of todays economic events, check out our economic calendar.