The Canadian Dollar/US Dollar USD/CAD currency pair ends the trading week near the level of 1.2511. The pair continues to move within the falling and descending channel. Moving averages indicate a bearish trend. Prices moved down from the area between the signal lines, which indicates pressure from 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 1.2425 area. Then, a rebound up and the beginning of the growth of quotes with a goal above the level of 1.3665.
USD/CAD Canadian Dollar trading forecast and for the week of April 19-23
An additional signal in favor of the rise of the USD/CAD currency pair will be a test of the support line on the relative strength indicator. The second signal will be a rebound from the lower border of the descending channel. The cancellation of the growth option for the USD/CAD currency pair on the current trading week on April 19-23, 2021 will be a fall and a breakdown of the 1.1745 area. This will indicate a breakdown of the lower limit of the bearish channel and a continuation of the fall to the area below the level of 1.1365. 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 1.2895.
USD/CAD Canadian Dollar trading forecast and for the week of April 19-23
Among the important news from Canada that may have an impact on the Canadian Dollar, it is worth highlighting: The Bank of Canada's Interest Rate Decision (Bank of Canada (BoC) Interest Rate Decision), a press conference on the Bank of Canada's Monetary Policy Report (Bank of Canada (BoC) Monetary Policy Report Press Conference).
Thus, the USD/CAD forecast for the Canadian Dollar for the week of April 19 — 23 suggests an attempt to test the support area near the level of 1.2425. Further, the continuation of the rise with a goal above the level of 1.3665. An additional signal in favor of growth will be a test of the trend line on the relative strength indicator. The cancellation of the option for the development of the rise will be a fall and a breakdown of the 1.1745 area. This will indicate the breakdown of the lower limit of the bearish channel and the continuation of the pair's fall with a target below 1.1365.