Today, during the Asian session, the USD/CAD pair shows flat dynamics, consolidating near the 1.2550 mark in anticipation of new drivers in the market.
USD/CAD forecast Canadian dollar for today and July 28-29, 2021
The weak statistics released on Monday on the dynamics of new home sales in the United States for June practically did not put additional pressure on the positions of the US currency, as trading participants are preparing for the US Federal Reserve meeting.
On Tuesday, the focus of investors ' attention is on American statistics on the dynamics of orders for durable goods for July, which will help indirectly assess the growth rate of inflation in the country. In addition, the May statistics on housing price indices from S&P/CaseShiller will also be released. Key data from Canada will appear on Wednesday, when the Bank of Canada will publish updated statistics on the dynamics of consumer prices. It is expected that in June, consumer inflation will continue to grow by 0.4% mom, but will noticeably weaken in annual terms from the previous 2.8% y/y to 2.4% y/y.
Support and resistance levels
On the daily chart, the Bollinger bands unfold into a horizontal plane within the framework of the forex forecast. The price range practically does not change, but it remains quite spacious for the current level of activity in the market. The MACD indicator is declining, maintaining a strong sell signal (the histogram is located below the signal line). Stochastic, approaching its minimum levels, turned into a horizontal plane, indicating the risks of oversold US currency in the ultra-short term.
Resistance levels: 1.2554, 1.2600, 1.2650, 1.2700.
Support levels: 1.2500, 1.2439, 1.2400, 1.2352.
Trading Scenarios
Thus, USD/CAD forecast for the Canadian Dollar on July 28-29, 2021, short positions can be opened after the breakdown of the 1.2500 level down with the target of 1.2400. The stop loss is 1.2554. Implementation period: 1-2 days.
Long positions can be opened after the breakdown of the 1.2600 level up with the target of 1.2700. The stop loss is 1.2554.