Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CAD Forecast: Pushes Higher Amid Dollar Strength

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The US dollar pulled back just a bit during the early hours of Tuesday, only to find support at the 1.40 level.
  • At this juncture, it does look like we are grinding even higher and perhaps trying to take out the 1.41 level.
  • In general, I think this is a market that continues to see a lot of US dollar strength transfer from other markets into this one.

The Canadian dollar is in a lot of trouble and has been for a while, but when you look at the longer term charts, it's probably worth noting that we are at an extreme high, an area that had been noisy, but did give way to the 1.46 level back in early 2020. So, it'll be interesting to see how this plays out, as we are trying to do everything we can to break out and go looking to search that area out.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Grinding, Not Flying Here

USD/CAD Forecast Today 04/12: Pushes Higher (graph)

This is more of a grind than it is a shot higher, but I do favor the US dollar for a whole litany of reasons, not the least of which. Recently, we've seen inflation numbers start to tick up ever so slightly. We've had a couple PMI manufacturing numbers tick up a bit. They're not strong, I wouldn't use that word, but they are higher than consensus, and that typically does have an effect on the market.

I anticipate that there should be support for any pullback in the USD/CAD, all the way down to at least the 1.3935 level. To the upside, the 1.42 level looks to be fairly resistive based on recent action, but I do think we may try to squeeze our way higher to test that area yet again. If we can break above there, it would be absolutely destructive and toxic for the Loonie, as we couldn’t get there even during the depths of the COVID 19 crisis.

Ready to trade our USD/CAD daily analysis and predictions? Here are the best Canadian online brokers to start trading with.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews