Currency pair US Dollar to Canadian Dollar USD/CAD continues to move within the correction and the downward channel. At the time of publication of the forecast, the US Dollar to the Canadian Dollar is 1.3423. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken through the area between the signal lines up, which indicates pressure from buyers and a potential continuation of the price pair growth in the near future. At the moment, it is worth considering an attempt to develop a rise in prices and a test of the resistance level near the area of 1.3545. Further, a rebound down and the continuation of the fall of the currency pair on Forex. The potential target of such movement of the instrument is the area below the level of 1.2965.
Canadian Dollar Forecast December 6, 2022
An additional signal in favor of a decrease in the Canadian Dollar quotes will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the decline will be a rebound from the upper border of the descending channel. Cancellation of the option of falling the USD/CAD currency pair on Forex will be a strong growth and a breakdown of the 1.3715 area. This will indicate a breakdown of the resistance area and a continuation of the rise in quotes to the area above the level of 1.3985. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing of the quotes of the USD/CAD pair below the level of 1.3335, which will indicate a breakdown of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
Among the important news from Canada that may have an impact on the USD/CAD pair, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI) in Canada.
Canadian Dollar Forecast December 6, 2022 suggests an attempt to test the resistance area near the level of 1.3545. Further, the continuation of the fall to the area below the level of 1.2965. An additional signal in favor of a decrease in the Canadian Dollar at Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of falling USD/CAD quotes will be a strong growth and a breakdown of the level of 1.3715. This will indicate a continued rise in the value of the asset with a potential target above the level of 1.3985.
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