The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2721. The pair continues to move within the fall and the downtrend channel. 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 resistance level near the 1.2915 area. Then, a rebound downward and the beginning of a fall in quotations with a target below the level of 1.2205.
USD/CAD Forecast and Weekly Analysis January 4 — 8, 2021
An additional signal in favor of raising the USD/CAD currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of falling quotations of the USD/CAD currency pair on the current trading week January 4 — 8, 2021 will be a strong growth and a breakdown of the 1.3255 area. This will indicate a breakdown of the upper border of the downward channel and continued growth to the area above the level of 1.3675. Confirmation of the fall in the pair will be the breakdown of the support area and the closing of the price below 1.2635.
Among the important news from Canada that may have an impact on the Canadian Dollar rate, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI), Canada Employment Change.
USD/CAD Forecast and Weekly Analysis January 4 — 8, 2021 suggests an attempt to test the resistance area near the level of 1.2915. Further, the continuation of the fall with the target below 1.2205. An additional signal in favor of a decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall development option will be a strong growth and a breakdown of the 1.3255 area. This will indicate a breakdown of the upper border of the downward channel and a continuation of the rise in the pair with a target above 1.3675.
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