The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2844. The pair continues to move within the correction and the downward channel, here the “Wedge” reversal pattern is forming. Moving averages indicate a bearish trend. Prices moved down from 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 bullish correction and a test of the support level near the 1.2635 area. Then, a rebound down and the beginning of the rise in quotations with a target above the level of 1.3545.
USD/CAD Forecast and Weekly Analysis February 1 — 5, 2021
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 boundary of the Wedge pattern. Cancellation of the growth option for the USD/CAD currency pair quotes on the current trading week for the week February 1 — 5, 2021 will be a fall and a breakdown of the 1.2445 area. This will indicate a breakdown of the lower boundary of the model and a continuation of the fall to the area below the level of 1.2025. Confirmation of the growth in the pair will be the breakdown of the resistance area and the closing of the price above the level of 1.2945, which will indicate a breakdown of the upper boundary of the “Wedge” model.
Among the important news from Canada that may have an impact on the Canadian Dollar exchange rate, it is worth highlighting: Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast and Weekly Analysis February 1 — 5, 2021 suggests an attempt to test the support area near the level of 1.2635. 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 1.2445 area. This will indicate a breakdown of the lower boundary of the “Wedge” model and the continuation of the fall of the pair with a target below 1.2025.
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