U.S. Dollar Is Gaining Some Ground Against Canadian Dollar
USD/CAD is currently trying to settle back below 1.2760 while U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index faced resistance at 97.45 and pulled back below the 97.25 level. The nearest support level for the U.S. Dollar Index is located at 97. In case the U.S. Dollar Index declines below this level, it will move towards the next support at 96.70 which will be bearish for USD/CAD.
Today, U.S. reported that Personal Income increased by 0.3% month-over-month in December compared to analyst consensus which called for growth of 0.5%. Meanwhile, Personal Spending declined by 0.6%, in line with the analyst consensus.
Foreign exchange market traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report for January. The report indicated that Consumer Sentiment declined from 70.6 in December to 67.2 in January compared to analyst consensus of 68.7.
Traders also continued to monitor the developments in the U.S. government bond markets. The yield of 2-year Treasuries touched new highs today but lost momentum and pulled back which was bearish for the American currency.
Technical Analysis
USD to CAD faced resistance near 1.2800 and is currently trying to get back below 1.2760. In case this attempt is successful, USD to CAD will move towards the support level at 1.2730.
A move below 1.2730 will push USD to CAD towards the next support at 1.2710. In case USD to CAD manages to settle below 1.2710, it will head towards the support at 1.2680.
On the upside, a move above 1.2760 will open the way to the test of the resistance at 1.2780. In case USD to CAD gets back above this level, it will get to another test of the resistance at 1.2800. A successful test of the resistance at 1.2800 will push USD to CAD towards the next resistance which is located at 1.2830.
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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