The pair Canadian Dollar to US Dollar USD/CAD completes the trading week near the level of 1.2706. A large ”Triangle” pattern is formed here. The pair continues to move within the framework of the correction and has left the descending channel. Moving averages indicate a bearish trend. Prices have broken the area between the signal lines upwards, which indicates pressure from buyers of the currency pair and a potential continued growth. At the moment, we should expect an attempt to develop a decline and test the support level near the 1.2525 area. Then, a rebound upward and the beginning of the rise in quotations with a target above the level of 1.3455.
USD/CAD Forecast and Weekly Analysis October 4 — 8, 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 border of the ”Triangle” pattern. Cancellation of the option to raise the quotes of the USD/CAD currency pair in the current trading week on October 4 – 8, 2021 will be a fall and a breakdown of the 1.2285 area. This will indicate a breakdown of support and a continued decline to the area below the level of 1.1935. The 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 1.3075, which will indicate a breakdown of the upper border of the ”Triangle” model.
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), Bank of Canada (BoC) Governor Macklem Speech, Canada Employment Change.
USD/CAD Forecast and Weekly Analysis October 4 — 8, 2021 implies an attempt to test the support area near the level of 1.2525. Further, continued growth with a target above the level of 1.3455. 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 1.2285 area. This will indicate a breakdown of important support and a continued decline in the pair with a target below 1.1935.
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