The US dollar loses ground against the Canadian dollar

The USD / CAD is currently trying to stabilize below the support level at 1.2475 as the US Dollar loses ground against a large basket of currencies.

The US dollar index recently attempted to stabilize below the 94 level, but failed to develop sufficient bearish momentum. If the US dollar index drops below this level, it will head to the support at 93.75 which will be bearish for the USD / CAD.

Today the United States released a report on non-farm wages that showed the US economy created 194,000 jobs in September. Analysts expected the economy to create 500,000 jobs. The report did not respond to analysts’ estimates and put pressure on the US currency, although it should be noted that this pressure was moderate.

Meanwhile, the Canadian dollar received strong support as WTI oil tested the $ 80 level. WTI Oil has not traded at such levels since 2014. If WTI Oil manages to establish itself above the $ 80 level, it will gain additional bullish momentum that will be bullish for commodity-linked currencies. , including the Canadian dollar.

The USD against CAD has managed to break below the support level at 1.2500 and is testing the next support which is at 1.2475. If this test is successful, the USD against the CAD will move towards the support level of the recent lows at 1.2450. The RSI remains in moderate territory, and there is enough room to develop further bearish momentum in case the right catalysts emerge.

If the USD to CAD drops below 1.2450, it will move to the next support level at 1.2425. A successful test of this level will pave the way for testing the support at 1.2400.

On the upside, the previous support at 1.2500 will serve as the first level of resistance for the USD against the CAD. In case the USD in CAD breaks above this level, it will move to the next resistance at 1.2520. A move above 1.2520 will push the USD towards the CAD towards resistance at 1.2550.

For an overview of all of today’s economic events, check out our economic calendar.


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