The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2067. 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 decline and a test of the support level near the 1.2005 area. Then, a rebound upward and the beginning of the rise in quotations with a target above the level of 1.2725.
USD/CAD Forecast and Weekly Analysis May 31 — June 4, 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 a rebound from the lower border of the bullish channel. Cancellation of the growth option of the USD/CAD currency pair quotes in the current trading week May 31 — June 4, 2021 will be a fall and a breakdown of the 1.1705 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 1.1455. Confirmation of the rise in the pair will be the breakdown of the resistance area and the closing of the price above the level of 1.2325.
Among the important news from Canada that may have an impact on the Canadian Dollar rate, it is worth highlighting: Canada Gross Domestic Product (GDP) m/m, Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast and Weekly Analysis May 31 — June 4, 2021 suggests an attempt to test the support area near the 1.2005 level. Further, continued growth with a target above the level of 1.2725. 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 1.1705 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 1.1455.
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