The US Dollar/Canadian Dollar/CAD currency pair continues to move within the falling and descending channel. At the time of publication of the forecast, the US Dollar/Canadian Dollar exchange rate is 1.2192. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices broke through the areas between the signal lines down, which indicates pressure from sellers and the potential continuation of the fall of the price pair in the near future. At the moment, we should expect an attempt to develop growth and test the resistance level near the 1.2335 area. Next, a rebound down and a continuation of the fall of the currency pair on Forex. The potential target of such a movement of the instrument is the area below the level of 1.1945.
USD/CAD forex forecast for today, May 7, 2021
An additional signal in favor of a fall in the Canadian Dollar quotes will be a test of the trend line on the relative strength indicator. The second signal in favor of a decline will be a rebound from the upper limit of the descending channel. The cancellation of the fall of the USD/CAD currency pair on Forex will be a strong growth and a breakdown of the 1.2475 area. This will indicate the breakdown of the resistance area and the continuation of the growth of quotes in the area above the level of 1.2695. It is worth waiting for confirmation of the pair's fall with the breakdown of the support area and the closing of the USD/CAD quotes below the level of 1.2145.
USD/CAD forex forecast for today, May 7, 2021
Among the important news from Canada that may affect the USD/CAD exchange rate, it is worth highlighting: the Ivey Canada Purchasing Managers Index (PMI), the Change in employment in Canada (Canada Employment Change).
Thus, the USD/CAD forex forecast for the Canadian Dollar on May 7, 2021 suggests an attempt to test the resistance area near the level of 1.2335. Further, the continuation of the fall to the area below the level of 1.1945. An additional signal in favor of a decline in the Canadian Dollar on Forex will be a test of the trend line on the relative strength indicator. The cancellation of the option of falling USD/CAD quotes will be a strong growth and a breakdown of the level of 1.2475. This will indicate a continued rise in the value of the asset with a potential target above the level of 1.2695.