USD/CAD Canadian Dollar forecast for March 29 - April 2, 2021
The Canadian Dollar/US Dollar USD/CAD currency pair ends the trading week near the level of 1.2575. 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 bullish correction and a test of the resistance level near the 1.2725 area. Then, a rebound down and the beginning of the fall of the quotes with a goal below the level of 1.2035.
An additional signal in favor of the fall of the USD/CAD currency pair will be the test of the resistance line on the relative strength indicator. The second signal will be a rebound from the upper limit of the descending channel. The cancellation of the option of reducing the quotes of the USD/CAD currency pair on the current trading week of March 29 — April 2, 2021 will be a strong growth and a breakdown of the 1.2995 area. This will indicate the breakdown of the upper limit of the descending channel and the continuation of growth in the area above the level of 1.3275. 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 1.2335.
Important news from Canada, which may have an impact on the Canadian Dollar, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, the USD/CAD forecast for the Canadian Dollar for March 29 — April 2, 2021 suggests an attempt to test the resistance area near the level of 1.2725. Further, the continuation of the fall with a target below the level of 1.2035. An additional signal in favor of a decline will be a test of the trend line on the relative strength indicator. The cancellation of the fall scenario will be a strong growth and a breakdown of the 1.2995 area. This will indicate the breakdown of the upper limit of the descending channel and the continuation of the pair's rise with a goal above 1.3275.