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USD/CAD Daily Forecast – Canadian Dollar Gains Ground As WTI Oil Rebounds

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·2 min read
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Canadian Dollar Moves Higher Against U.S. Dollar

USD/CAD is currently trying to settle back above 1.2760 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index has recently tested the support level at 95.75 but failed to develop sufficient downside momentum. The nearest resistance level for the U.S. Dollar Index is located at 96. In case the U.S. Dollar Index manages to settle above 96, it will head towards the resistance at 96.25 which will be bullish for USD/CAD.

Today, foreign exchange market traders had a chance to take a look at ADP Employment Change report from U.S. The report indicated that private businesses added 534,000 jobs in November compared to analyst consensus of 525,000.

U.S. has also reported that Manufacturing PMI declined from 58.4 in October to 58.3 in November while analysts expected that it would grow to 59.1. In Canada, Manufacturing PMI declined from 57.7 in October to 57.2 in November.

Canadian dollar received some support from oil’s rebound today. It should be noted that OPEC+ will likely announce its decision on production tomorrow, so traders should be prepared for fast moves in the oil markets which may have a material impact on USD/CAD dynamics.

Technical Analysis

USD to CAD has recently managed to get back above 1.2760 and is trying to settle above this level. In case this attempt is successul, it will get to the test of the next resistance level at 1.2780.

A successful test of the resistance at 1.2780 will push USD to CAD towards the next resistance at 1.2800. In case USD to CAD gets above this level, it will head towards the resistance at 1.2825. A move above 1.2825 will open the way to the test of the resistance at 1.2850.

On the support side, a move below 1.2760 will push USD to CAD back towards the support at 1.2730. This support level was tested during the current trading session and proved its strength. A successful test of this support level will push USD to CAD towards the support at 1.2700.

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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