The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.3078. The pair continues to move within the framework of the decline and the formation of the “Wedge” reversal pattern. Moving averages indicate the presence of a bearish trend. Prices have moved down from the area between the signal lines, which indicates high pressure from 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 1.3025 area. Then, the continued growth of quotations with a target above the level of 1.3665.
USD/CAD Forecast and Analysis August 31 — September 4, 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 lower boundary of the “Wedge” pattern. Cancellation of the growth option for the USD/CAD currency pair in the current trading week of August 31 — September 4, 2020 will be a fall and a breakdown of the 1.2805 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 1.2425. Confirmation of growth for the pair will be a breakdown of the resistance area and closing prices above 1.3325.
Among the important news from Canada that may affect the Canadian Dollar rate, it is worth highlighting: Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast and Analysis August 31 — September 4, 2020 suggests an attempt to test the support area near the level of 1.3025. Further, continued growth with a target above the level of 1.3665. 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 1.2805 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 1.2425.
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