Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of a bullish correction and a downward channel. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.3438. Moving averages indicate a short-term bearish trend for the pair. Prices bounced off 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 bullish correction and test the resistance level near the 1.3465 area. Further, a rebound down and the continuation of the fall of the currency pair on Forex. The potential target of such a movement of the instrument is the area below the level of 1.3215.
USD/CAD Forecast Canadian Dollar July 31, 2020
An additional signal in favor of the fall in the Canadian Dollar quotes will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the fall will be a rebound from the upper border of the descending channel. Cancellation of the option to reduce USD/CAD at Forex will be a strong growth and a breakdown of the 1.3545 area. This will indicate a breakdown of the resistance area and a continued rise in quotations to the area above the level of 1.3735. Expect an acceleration in the fall of the pair with the breakdown of the support area and closing of the USD/CAD quotes below 1.3315.
Among the important news from Canada, which may have an impact on the USD/CAD pair, it is worth highlighting: Canada Gross Domestic Product (GDP) m/m.
USD/CAD Forecast Canadian Dollar July 31, 2020 suggests an attempt to test the resistance area near the level of 1.3465. Further, the continuation of the fall to the area below the level of 1.3215. An additional signal in favor of the fall of the Canadian Dollar on Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to reduce the USD/CAD quotes will be a strong growth and a breakdown of the level of 1.3545. This will indicate a continued rise with a potential target above the level of 1.3735.
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