Canadian Dollar/US Dollar USD/CAD forex currency pair ends the trading week near the level of 1.2268. The pair continues to move within the falling and descending channel. Moving averages indicate a bearish trend. Prices moved down from the area between the signal lines, which indicates pressure from sellers of the currency pair and a potential continuation of the fall. At the moment, we should expect an attempt to develop growth and test the resistance level near the 1.2685 area. Then, a rebound down and the beginning of the fall of the quotes with a goal below the level of 1.1585.
USD/CAD trading forecast for the week of May 3-7, 2021
An additional signal in favor of the fall of USD/CAD forex currency pair will be the test of the resistance line on the relative strength indicator. The second signal will be a rebound from the upper limit of the descending channel. The cancellation of the option of reducing the quotes of USD/CAD forex currency pair on the current trading week on May 3-7, 2021 will be a strong growth and a breakdown of the 1.2875 area. This will indicate the breakdown of the upper limit of the bearish channel and the continuation of growth in the area above the level of 1.3455. Confirmation of the fall in the pair will be the breakdown of the support area and the closing of the price under the level of 1.2205.
USD/CAD trading forecast for the week of May 3-7, 2021
Among the important news from Canada, which may have an impact on Canadian Dollar, it is worth highlighting: The change in employment in Canada (Canada Employment Change), the Index of Purchasing Managers in Canada from Ivey (Ivey Canada Purchasing Managers Index (PMI)).
Thus, USD/CAD trading forecast for Canadian Dollar for the week of May 3-7, 2021 suggests an attempt to test the resistance area near the level of 1.2685. Further, the continuation of the fall with a target below the level of 1.1585. An additional signal in favor of a decline will be a test of the trend line on the relative strength indicator. The cancellation of the fall scenario will be a strong growth and a breakdown of the 1.2875 area. This will indicate the breakdown of the upper limit of the bearish channel and the continuation of the pair's rise with a target above 1.3455.