The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.3308. The pair continues to move within the framework of growth and the beginning of the development of the “Wedge” reversal pattern. Moving averages indicate a bearish trend. Prices are testing the area between the signal lines, which indicates 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 1.3105 area. Then, the continued growth of quotations with a target above the level of 1.3925.
USD/CAD Forecast and Analysis October 5 — 9, 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 upper border of the Wedge reversal pattern. Cancellation of the option to raise the quotes of the USD/CAD currency pair on the current trading session on October 5 – 9, 2020 will be a fall and a breakdown of the 1.2705 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 1.2345. Confirmation of the growth in the pair will be the breakdown of the resistance area and closing prices above the level of 1.3455.
Among the important news from Canada, which may have an impact on the Canadian Dollar rate, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI), Bank of Canada (BoC) Governor Macklem Speech, Canada Employment Change.
USD/CAD Forecast and Analysis October 5 — 9, 2020 suggests an attempt to test the support area near the level of 1.3105. Further, continued growth with a target above 1.3925. 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 1.2705 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 1.2345.
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