The USDCAD is testing the resistance at 1.2800 while the US dollar is losing ground against a wide range of currencies.
The nearest resistance level for the US Dollar Index is located at 90.50. If the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at which is located at the 20 EMA at 90.70 which will be bullish for the Loonie.
Dur to the holiday week, there are no significant economic reports scheduled to be released in US and Canada today so foreign exchange market traders focus on the latest developments on the stimulus front.
The leaving US President Donald Trump has signed the new covid-19 aid package on Sunday so the economy will soon get the necessary backing.
Interestingly, stimulus news provided support to the stock market but did not provide enough support to riskier currencies, and the US Dollar Index is currently trying to gain some upside momentum.
USD to CAD is currently testing the 1.2820 level. If this attempt is successful, USDCAD will gain additional downside momentum and move towards the next resistance level which is located at 1.2775.
The RSI oscillator is in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge. On the upside if USDCAD manages to settle above the resistance at 1.2900, it will head towards the resistance at the 50 EMA at 1.2935.
