The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2778. The pair continues to move within the framework of the fall and the downtrend channel, the bears pushed through an important chunk of support at 1.2990. Moving averages indicate a bearish trend. Prices moved down from the area between the signal lines, which indicates 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 fall and a test of the support level near the 1.2575 area. Then, a rebound upward and the start of growth in quotations with a target above the level of 1.3545.
USD/CAD Forecast and Analysis December 21 — 25, 2020
An additional signal in favor of raising the USD/CAD currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the descending channel. Cancellation of the option to raise the quotes of the USD/CAD currency pair on the current trading session on December 21 — 25, 2020 will be a fall and a breakdown of the 1.2345 area. This will indicate a breakdown of the lower border of the downward channel and a continuation of the fall to the area below 1.1905. Confirmation of growth for the pair will be a breakdown of the resistance area and closing prices above 1.3025.
Among the important news from Canada that may have an impact on the Canadian Dollar rate, it is worth highlighting: Canada Gross Domestic Product (GDP) m/m.
USD/CAD Forecast and Analysis December 21 — 25, 2020 suggests an attempt to test the support area near the level of 1.2575. Further, continued growth with a target above the level of 1.3545. An additional signal in favor of the rise 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 1.2345 area. This will indicate a breakdown of the lower border of the downward channel and the continuation of the pair’s fall with a target below 1.1905.
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