Video USD / CAD 19.03.21.
The U.S. dollar moves higher over the weekend
USD / CAD gained momentum upside and attempted to settle above the resistance at 1.2550 while the US dollar moved higher against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle above the face at the level of 92. RSI is in the middle range, and there is plenty of room for further upside movement in case the proper catalysts. If the US Dollar Index sets above 92, it will move towards the resistance at 92.25 which will be bullish for USD / CAD.
Today, Canada reported that retail sales fell 1.1% month-over-month in January while analysts expected a 3% decline. Each year, sales rose 1.3%.
At the same time, foreign exchange market traders were still focused on the developments in U.S. government bond markets and commodity markets.
Finance had a volatile trading session, and the Treasury’s outlook looks likely to remain close to multi-month highs ahead of the weekend. WTI oil is currently trying to settle above the psychologically important $ 60 level after a big sale yesterday. If this effort succeeds, commodity-related currencies such as the Canadian dollar may gain more support.
USD to CAD is currently trying to stay above the nearest support level at 1.2500. If this attempt succeeds, USD will get to CAD to another test of the resistance at 1.2525.
A move above the front at 1.2525 will open the way to testing the next protection level which is close to the 20 EMA at 1.2550. In the case of USD to CAD managing to settle above the 20 EMA, it will gain additional upside momentum and head up against the 1.2590.
On the support side, a move below the support at 1.2500 will push USD to CAD towards the support at 1.2470. If USD to CAD happens to decline below 1.2470, it will move towards the next support at 1.2450. A move below 1.2450 will open the way to the next support test at 1.2425.
To view today’s economic events, take a look at our economic calendar.