The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.3223. The pair continues to move within the decline and ascending channel. Moving averages indicate a sideways trend. However, prices have very strongly broken the area between the signal lines downward, which indicates high pressure from the sellers of the currency pair and a potential continuation of the fall. At the moment, we should expect an attempt to develop a bearish correction and a test of the support level near the 1.3055 area. Then, the continued growth of quotations with a target above the level of 1.3935.
USD/CAD Forecast and Analysis August 24 — 28, 2020
A test of the support line on the relative strength index (RSI) will be in favor of the growth of the USD/CAD currency pair. The second signal will be a rebound from the support area. Cancellation of the growth option for the USD/CAD currency pair in the current trading week August 24 — 28, 2020 will be a fall and a breakdown of the 1.2865 area. This will indicate a breakdown of the lower border of the channel and a continuation of the fall to the area below the level of 1.2455. Confirmation of the growth in the pair will be the breakdown of the resistance area and the closing of prices above the level of 1.3375.
Among the important news from Canada that may affect the Canadian Dollar rate, it is worth highlighting: Bank of Canada (BoC) Governor Macklem Speech, Canada Gross Domestic Product (GDP) m/m.
USD/CAD Forecast and Analysis August 24 — 28, 2020 suggests an attempt to test the support area near the level of 1.3055. Further, continued growth with a target above the level of 1.3935. An additional signal in favor of growth will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth development option will be a fall and a breakdown of the 1.2865 area. This will indicate a breakdown of the lower border of the channel and the continuation of the pair’s fall with a target below 1.2455.
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