The Canadian Dollar/US Dollar USD/CAD currency pair ends the trading week near the level of 1.2607. The pair continues to move within the framework of the rise and has left the limits of the descending channel. Moving averages indicate the presence of a bearish trend. Prices are again testing 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 1.2375 area. Then, a rebound up and the beginning of a rise in quotes with a goal above the level of 1.3485.
An additional signal in favor of the growth 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 upper border of the descending channel. The cancellation of the option for the growth of quotations of the USD/CAD currency pair on the current trading week on July 19-23, 2021 will be a fall and a breakdown of the 1.2055 area. This will indicate a breakdown of the lower border of the bearish channel and the continuation of the fall to the area below the level of 1.1625. 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 1.2755.
USD/CAD Canadian Dollar signals for July 19-23, 2021
Among the important news from Canada that may affect the exchange rate of the Canadian Dollar, it is worth highlighting: Retail sales in Canada m / m (Canada Retail Sales m/m), the Basic retail sales Index in Canada m/m (Canada Core Retail Sales m / m).
Thus, the USD/CAD forecast for the Canadian Dollar for July 19-23, 2021 suggests an attempt to test the support area near the level of 1.2325. Further, the growth will continue with a goal above the level of 1.3055. An additional signal in favor of the rise will be a test of the trend line on the relative strength indicator. The cancellation of the growth development option will be a fall and a breakdown of the 1.1975 area. This will indicate a breakdown of the lower border of the bearish channel and the continuation of the pair's fall with a target below 1.1545.