USD/CAD forecast for February 1, 2021

Looking at the chart on the weekly time frame, we see that the USD/CAD pair found support above 1.25000 and made a reverse trend. We can look for potential resistance at 1.30000. Following the moving averages, we see that the pair will soon meet MA20 and EMA 20, and whether they will become support depends on global economic influences. If the situation remains like this with an increase in the risk caused by slow vaccination with small stocks of the vaccine and the postponement of the financial package, it affects the dollar, giving a signal to investors in short-term profits by investing in the dollar.
We see that the USD/CAD pair is still in a bearish trend on the daily time frame and that pullback is always possible. The pair finds support at 1.25800, and the year the dollar started in a bullish trend. The USD/CAD pair also gets support with MA20 and EMA20, currently testing the MA50 looking for its support. Based on all this, we can hope that the pair will reach 1.30000, where we will re-analyze the data from the chart.
We see that the USD/CAD pair has been in the bulls trend on the four-hour time frame since January 21st. All moving averages from below now support the USD/CAD pair. We can now see if it will manage to consolidate a little more above for a potential continuation of the bullish trend to the psychological level at 1.30000. Bullish investors expect the pair to climb above 1.28700 to move on to higher levels. For the bearish scenario, this is just a short-term breath and a respite for the dollar, and we can expect a sequel if the pair falls below 1.27400.
From the economic news, we can point out that the USD/CAD pair will have essential news this week: important events await us on Friday in Canada’s The Ivey Purchasing Managers’ Index and Employment Change for January and the dollar, the Unemployment Rate and Nonfarm Payrolls.