Today, during the Asian session, the USD/CAD pair is rising moderately, developing a strong "bullish" momentum that formed at the end of last week.
USD/CAD forecast US dollar Canadian dollar for today and July 21-22, 2021
The day before, the instrument showed the most active growth in the last few months and updated local highs since February 5, receiving support from low demand for risk. Investors are seriously concerned about the growth of new cases of coronavirus, which encourages some countries to return the old restrictions and introduce new ones. The alarming statistics come from the US and the UK, which yesterday, as expected, fully opened its economy.
On Tuesday, the focus of American investors will be on statistics from the United States on the dynamics of construction permits issued and the volume of construction actually started in June. Analysts expect a moderate increase in indicators, which is likely to provide additional support to the dollar. Statistics from Canada will appear only on Wednesday, when the June index of housing prices in the primary market is released.
Support and resistance levels
On the daily chart, the Bollinger bands are steadily growing within the framework of the forex forecast. The price range is expanding, but at the moment it does not have time for such a significant increase in "bullish" activity. The MACD indicator is growing, maintaining a strong buy signal (the histogram is located above the signal line). The stochastic, having reached its maximum values, turned into a horizontal plane, indicating a strong overbought dollar in the ultra-short term.
Resistance levels: 1.2800, 1.2850, 1.2900.
Support levels: 1.2746, 1.2700, 1.2650, 1.2600.
Trading Scenarios
Thus, USD/CAD forecast of the Canadian Dollar for July 21-22, 2021, long positions can be opened after the breakdown of the level of 1.2800 up with the goal of 1.2900. The stop loss is 1.2746. Implementation period: 1-2 days.
Short positions can be opened after a rebound from the 1.2800 level and a breakdown of the 1.2746 level down with the target of 1.2650. The stop loss is 1.2800.