Yesterday, during the Asian session, the USD/CAD pair is declining, retreating from the local highs of April 21, updated the day before.
USD/CAD forecast US Dollar Canadian Dollar for July 19-20, 2021
Investors are in a hurry to take profits from long positions on the instrument, and also react to yesterday's speech by the head of the US Federal Reserve Jerome Powell in Congress, showing some disappointment. The official once again stressed that the US economy is far from tightening monetary policy, so the market has revised its medium-term plans, and even the boldest forecasts now do not imply a reduction in the quantitative easing program until next year.
On Friday, statistics from Canada on the dynamics of wholesale sales for May and the volume of construction of houses started in June will be published. In the US, retail sales data for June will be released. In addition, bidders expect the publication of the consumer confidence index from the University of Michigan for July.
Support and resistance levels
On the daily chart, the Bollinger bands are steadily growing within the framework of the forex forecast. The price range expands from above, freeing the way for the "bulls" to new local highs. The MACD indicator shows growth, maintaining a relatively strong buy signal. Stochastic retains its upward trend, but is rapidly approaching the maximum levels, signaling the risks of overbought dollar in the ultra-short term.
It is necessary to hold the existing long positions until the signals from the technical indicators are clarified.
Resistance levels: 1.2600, 1.2650, 1.2700.
Support levels: 1.2554, 1.2500, 1.2439, 1.2400
Trading Scenarios
Thus, USD/CAD forecast for the Canadian Dollar on July 19-20, 2021, short positions can be opened after a rebound from the 1.2600 level and a breakdown of the 1.2554 level down with a target of 1.2439. The stop loss is 1.2610. Implementation period: 2-3 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.