Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of a decline and a downward channel. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.3136. Moving averages indicate a short-term bearish trend for the pair. Prices pushed down from the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall in prices in the near future. At the moment, we should expect an attempt to develop a fall and a test of the support level near the 1.3095 area. Further, an upward rebound and continued growth of the currency pair on Forex. The potential target of such a movement of the instrument is the area above the level of 1.3525 within the framework of the beginning of the «Wedge» model development.
USD/CAD Forecast Canadian Dollar August 28, 2020
An additional signal in favor of raising the Canadian Dollar quotes will be a test of the rising trend line on the relative strength index (RSI). The second signal in favor of the rise will be the breakdown of the upper border of the descending channel. Cancellation of the growth option for USD/CAD at Forex will be a fall and a breakdown of the 1.3035 area. This will indicate a breakdown of the support area and a continued fall in quotations to the area below the level of 1.2805. Expect an acceleration of the pair’s ascent with the breakdown of the resistance area and the closing of the USD/CAD pair quotes above the level of 1.3275, which will indicate a breakdown of the upper border of the descending channel, as well as a breakdown of the upper border of the «Wedge» reversal pattern.
Among the important news from Canada that may have an impact on the USD/CAD pair rate, it is worth highlighting: Canada Gross Domestic Product (GDP) m/m.
USD/CAD Forecast Canadian Dollar August 28, 2020 suggests an attempt to test the support area near the level of 1.3095. Further, continued growth to the area above the level of 1.3525. An additional signal in favor of the rise of the Canadian Dollar on Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option for the USD/CAD quotes will be a fall and a breakdown of the level of 1.3035. This will indicate a continued decline in the value of the asset with a potential target below 1.2805.
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