USD/CAD Daily Forecast – Another Test Of Support At 1.2590
USD/CAD Video 03.03.21.
U.S. Dollar Is Losing Ground Against Canadian Dollar
USD/CAD continues its attempts to settle below the support at 1.2590 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle above the 91 level but failed to develop sufficient upside momentum and pulled back closer to 90.80. The nearest support level for the U.S. Dollar Index is located at the 50 EMA at 90.70. In case the U.S. Dollar Index declines below this support level, it will head towards the next support at the 20 EMA at 90.60 which will be bearish for USD/CAD.
Today, foreign exchange market traders had a chance to take a look at U.S. ADP Employment Change report which indicated that private businesses hired 117,000 workers in February compared to analyst consensus of 177,000.
Meanwhile, the final reading of the U.S. Services PMI report indicated that Services PMI increased from 58.3 in January to 59.8 in February compared to analyst consensus of 58.9. The services segment of the U.S. economy continues to rebound as the vaccination program improves the situation on the coronavirus front.
Technical Analysis
The technical picture for USD to CAD has not changed much compared to the previous trading session. Currently, USD to CAD is trying to settle below the support at 1.2590, but this support level continues to show its strength.
In case USD to CAD manages to settle below the support at 1.2590, it will head towards the next support level at 1.2550. A successful test of the support at 1.2550 will push USD to CAD towards the next support at 1.2525.
On the upside, the nearest resistance level for USD to CAD is located at 1.2625. If USD to CAD manages to settle above this level, it will head towards the next resistance at the 20 EMA at 1.2660. This resistance level has already been tested during the current trading session and proved its strength.
In case USD to CAD gets above the 20 EMA, it will move towards the resistance at 1.2700. A successful test of this level will push USD to CAD towards the resistance at the 50 EMA at 1.2715.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
