At the opening of trading, the USD/CAD pair shows a downward trend, trading at 1.2578.
USD/CAD forecast Canadian dollar for today and July 27-28, 2021
The Canadian economy is recovering amid an improvement in the situation with the coronavirus. Vaccination is proceeding at an active pace, and more than 70% of the country's population has already received the first vaccination. In this regard, Canada opens its borders for vaccinated tourists from the United States from August 9 and for tourists from the rest of the world — on September 9. Against the background of the successful fight against the pandemic, macroeconomic indicators are also improving. The core retail sales index for May reduced the rate of decline to -2.0% from -7.2% a month earlier. The annual indicator decreased by 2.1%, which is better than the 5.7% drop a month earlier.
The US dollar is at the closing levels of last week, as the statistics on business activity in the main sectors were contradictory. According to preliminary data for July, business activity in the production sector is 63.1 points, which is better than the projected 62.0 points. At the same time, the indicator in the services sector remains worse than the forecast, amounting to 59.8 points instead of 64.8 points expected by analysts. The main reason for the weakness of the service sector lies in the crisis in the labor market, which showed another decline on Thursday.
Support and resistance levels
On the global chart, the price is adjusted downwards as part of the next wave of local correction within the forex forecast. Technical indicators hold a global buy signal: fast EMAS on the alligator indicator are above the signal line, and the histogram of the AO oscillator is trading in a positive zone, forming descending bars.
Resistance levels: 1.2632, 1.2785.
Support levels: 1.2520, 1.2310.
Trading Scenarios
Thus, USD/CAD forecast of the Canadian Dollar for July 27-28, 2021, if the local decline of the asset continues, as well as the price fixes below the 1.2520 mark, sell positions with the target of 1.2310 will be relevant. The stop loss is 1.2600. Implementation period: 5 days.
If the global growth of the asset continues, as well as the price fixes above the 1.2632 mark, buy positions with the target of 1.2785 will be relevant. The stop loss is 1.2580.