The Canadian dollar continues to gain ground against the US dollar
The USD / CAD managed to descend below the support level at 1.3000 and attempted to move below the next support at 1.2965 as the rally in oil prices provided significant support to related currencies to raw materials.
Meanwhile, the US dollar index failed to move above support at 92.10, gained significant upward momentum and managed to break through resistance at 92.50. Currently, the US dollar index is trying to pass the test of the 93 level. If the US dollar index manages to break above 93, it will gain additional bullish momentum and head towards the 20 EMA at 93.25 which will be bullish for the USD / CAD.
No major economic report was scheduled to be released in the US and Canada today, so USD / CAD traders focused on the latest developments on the commodities front and overall market sentiment. .
Markets are very bullish today due to positive vaccine news. Interestingly, the vaccine news supported the US currency which was under pressure early in the day.
The recent rise in the US dollar index is likely to be explained by the huge jump in US government bond yields which made the US dollar more attractive against other currencies.
Today this catalyst was offset by the major rally in oil prices, so the USD / CAD was under pressure, but it remains to be seen whether the Canadian dollar will be able to hold on to its recent gains in the coming sessions. negotiation.
The USD against the CAD fell below support at 1.3000 and took a strong bearish momentum. However, it failed to stabilize below the support at 1.2965.
If USD to CAD moves below this support level, it will test for the next support at 1.2915.
On the upside, the previous support level at 1.3000 will likely serve as the first level of resistance for USD to CAD.
If the USD to CAD manages to break above that level, it will gain momentum upward and move towards the next resistance level which is at 1.3050.
A move above this level will pave the way for the test of the next resistance at 1.3080.
For an overview of all of today’s economic events, check out our economic calendar.