USD/CAD Daily Forecast – U.S. Dollar Little Changed Against Canadian Dollar
USD/CAD Video 23.10.20.
Currency Traders Remain Focused On Stimulus News
USD/CAD made an attempt to settle below the support at 1.3135 but returned back above this level while the U.S. dollar lost some ground against a broad basket of currencies and oil price was little changed ahead of the weekend.
The U.S. Dollar Index has recently tried to settle below the support at 92.80 but failed to gain downside momentum. If the U.S. Dollar Index settles below this level, it will head towards the next support at 92.50 which will be bearish for USD/CAD.
Recently, U.S. House Speaker Nancy Pelosi stated that it was possible to get a new round of stimulus before the election. However, there was little reaction to her words in the markets.
Today, the U.S. provided Flash PMI reports for October. Manufacturing PMI increased from 53.2 in September to 53.3 in October compared to analyst consensus of 53.4.
Meanwhile, the Services PMI report was much better than expected as Services PMI increased from 54.6 to 56.0 while analysts expected that it would stay unchanged at 54.6.
A stronger-than-expected Services PMI report provided hopes for a continuation of the economic recovery despite the second wave of the virus, but it remains to be seen whether recovery could stay robust in case U.S. lawmakers fail to negotiate another round of economic stimulus.
Technical Analysis
USD to CAD failed to settle below the support at 1.3135 and is trying to gain upside momentum. The nearest resistance level for USD to CAD is located at the 20 EMA at 1.3185.
In case USD to CAD manages to settle above this resistance, it will get to the test of the next resistance at 1.3200. A move above this level will open the way to the test of the resistance at the 50 EMA at 1.3225.
On the support side, USD to CAD must settle below 1.3135 to have a chance to develop downside momentum. The next support level is located at 1.3100. If USD to CAD moves below the support at 1.3100, it will decline towards the next support level at 1.3050.
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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