USD/CAD Daily Forecast – Resistance At The 50 EMA Stays Strong

USD/CAD Video 29.03.21.

U.S. Dollar Gains Some Ground Against Canadian Dollar At The Start Of The Week

USD/CAD has recently made an attempt to settle above the resistance at the 50 EMA at 1.2620 while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index made an attempt to get to the test of the 93 level but failed to develop sufficient upside momentum and pulled back. In case the U.S. Dollar Index manages to settle above this level, it will gain additional upside momentum which will be bullish for USD/CAD.

No important economic reports will be released in the U.S. and Canada today so foreign exchange market traders will remain focused on the dynamics of commodity markets and general market sentiment.

WTI oil had a volatile trading session as traders reacted to the news from Suez Canal which was blocked by the huge container ship Ever Given. According to recent reports, the ship was refloated, and shipping traffic resumed. Interestingly, WTI oil managed to get some support and is currently trying to settle above the $61 level which is bullish for commodity-related currencies like Canadian dollar.

Technical Analysis

usd cad march 29 2021

USD to CAD did not manage to settle above the nearest resistance level at the 50 EMA at 1.2620 and declined towards the support at 1.2590. In case USD to CAD manages to settle below the support at 1.2590, it will head towards the next support level which is located at the 20 EMA at 1.2565.

A successful test of the support at the 20 EMA will open the way to the test of the next support level at 1.2550. In case USD to CAD declines below the support at 1.2550, it will move towards the next support at 1.2525.

On the upside, the nearest resistance level for USD to CAD is still located at the 50 EMA at 1.2620. If USD to CAD manages to settle above this level, it will head towards the resistance at 1.2665. A move above this level will push USD to CAD towards the resistance at 1.2700.

For a look at all of today’s economic events, check out our economic calendar.