Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the fall and the downward channel. At the time of the publication of the forecast, the exchange rate of the US dollar to the Canadian dollar is 1.2684. Moving averages indicate a short-term bearish trend for the pair. Prices went down from the area between the signal lines downward, which indicates pressure from sellers and a potential continuation of the fall of the price pair in the near future. At the moment, we should expect an attempt to develop a decline and a test of the support level near the 1.2645 area. Further, an upward rebound and a continuation of the rise of the currency pair on Forex. A potential target of such a movement of the instrument is the area above the level of 1.2865.
USD/CAD Forecast Canadian Dollar January 7, 2021
An additional signal in favor of raising the Canadian Dollar quotes will be a test of the trend line on the relative strength index (RSI). The second signal in favor of growth will be the completion of the formation of the “Head and Shoulders” reversal pattern. Cancellation of the option to raise the USD/CAD currency pair on Forex will be a fall and a breakdown of the 1.2565 area. This will indicate a breakdown of the support area and a continued decline in quotations to the area below the level of 1.2425. It is worth waiting for confirmation of the growth of the pair with the breakdown of the resistance area and closing of the USD/CAD quotes above the level of 1.2765.
Among the important news from Canada, which may have an impact on the USD/CAD pair, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI), the indicator is expected to fall seriously from 52.7 to 38.0, which could put pressure on the Canadian dollar against the US currency.
USD/CAD Forecast Canadian Dollar January 7, 2021 suggests an attempt to test the support area near the level of 1.2645. Further, continued growth to the area above the level of 1.2865. 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 1.2565. This will indicate a continued decline in the value of the asset with a potential target below 1.2425.
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