The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2268. 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 sellers of the currency pair and a potential continuation of the fall. At the moment, we should expect an attempt to develop growth and test the resistance level near the 1.2685 area. Then, a rebound downward and the beginning of a fall in quotations with a target below the level of 1.1585.
USD/CAD Forecast and Weekly Analysis May 3 — 7, 2021
An additional signal in favor of the fall of 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 to reduce the quotes of the USD / CAD currency pair in the current trading week May 3 — 7, 2021 will be a strong growth and a breakdown of the 1.2875 area. This will indicate a breakdown of the upper border of the bearish channel and continued growth to the area above the level of 1.3455. Confirmation of the fall in the pair will be the breakdown of the support area and the closing of the price below 1.2205.
Among the important news from Canada, which may have an impact on the Canadian Dollar rate, it is worth highlighting: Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast and Weekly Analysis May 3 — 7, 2021 suggests an attempt to test the resistance area near the level of 1.2685. Further, the continuation of the fall with the target below the level of 1.1585. 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 1.2875 area. This will indicate a breakdown of the upper border of the bearish channel and a continued rise in the pair with a target above 1.3455.
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