The pair Canadian Dollar to US Dollar USD/CAD completes the trading week near the level of 1.2435. The pair continues to move within the correction and the downward channel. Moving averages indicate a bearish trend. Prices are again 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 decline and test the support level near the 1.2045 area. Then, a rebound upward and the beginning of the rise in quotations with a target above the level of 1.3105.
USD/CAD Forecast and Weekly Analysis July 5 — 9, 2021
An additional signal in favor of the growth of the USD/CAD currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be the formation of the “Head and Shoulders” reversal pattern. Cancellation of the growth option for the USD/CAD currency pair quotes in the current trading week USD/CAD Forecast and Weekly Analysis July 5 — 9, 2021 will be a fall and a breakdown of the 1.1915 area. This will indicate a breakdown of the lower border of the bearish channel and a continuation of the fall to the area below the level of 1.1565. The rise in the pair will be confirmed by the breakdown of the resistance area and the closing of the price above the level of 1.2545, which will indicate the completion of the formation of the “Head and Shoulders” reversal pattern.
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 July 5 — 9, 2021 suggests an attempt to test the support area near the level of 1.2045. Further, continued growth with a target above the level of 1.3105. 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 1.1915 area. This will indicate a breakdown of the lower border of the bearish channel and the continuation of the fall of the pair with a target below 1.1565.
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