- USD/CAD is higher in the American session, up 0.38%.
- The war between Russia and Ukraine weighs heavily on sentiment as NATO and US officials have warned the conflict could drag on for years.
- USD/CAD Price Forecast: The pair remains biased to the downside, but a daily close above 1.2600 would add upward pressure on USD/CAD.
The USD/CAD is making up some ground and is aiming to break above the 200 DMA, but pulled back at the end of the American session, amid risk-off market sentiment that dragged the pair below 1.2600. At time of writing, USD/CAD is trading at 1.2589.
Geopolitical problems in Eastern Europe, in particular the Ukraine-Russo war, continue to affect the mood. However, risk appetite increased, with US stocks fluctuating, as the US Senate unanimously backed legislation banning oil imports from Russia.
Meanwhile, NATO and US officials have warned that the war in Ukraine could last for weeks or even years, while kyiv’s foreign minister called for urgent military assistance so that Ukraine could make a difference in its fight against Russia. Russia.
Kremlin reports reported that Russian President Putin discussed peace talks with the Russian security council and the military operation in Ukraine, RIA reported.
A missing Canadian economic docket keeps USD/CAD traders adrift on US data. However, Canadian employment numbers will grab headlines on Friday, with the employment change expected for March. be 80,000. The Unemployment Rate for the same period is likely to fall to 5.3%.
On the US front, the economic docket revealed initial jobless claims for the week ending April 2, which came in at 166,000 less than the 200,000 expected.
USD/CAD Price Forecast: Technical Outlook
USD/CAD entered the session on Thursday in a neutral downward trend, but after the Fed Minutes, it reacted to the upside. During the session, USD/CAD briefly tested the 200-day moving average (DMA) at 1.2617, then pulled back below the 1.2600 figure. On their way south, USD/CAD bears recaptured the daily low resistance from Mar 3 at 1.2587, and it is worth noting that the RSI at 49.43 remains below the 50 midline. , despite the steeper 131 pip rise in USD/CAD.
The first support level of the USD/CAD would be 1.2532. A break of the latter would expose the 1.2500 level, followed by the daily low of March 25 at 1.2465.
To the upside, the first resistance for USD/CAD would be at 1.2600. Once cleared, the next resistance would be the 200 DMA at 1.2617, followed by the daily low resistance on Feb 10 at 1.2636, followed by the confluence of the 50 and 100 DMAs at 1.2667 and 1.2687, respectively.
Technical levels
Source: Fx Street
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