The currency pair USD/CAD continues to move within a bearish channel, indicating a downward trend. At the time of this forecast, the exchange rate of the US Dollar against the Canadian Dollar stands at 1.3186. The moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken below the area between the signal lines, indicating selling pressure and the potential continuation of the pair’s price decline in the near future. Currently, we should consider an attempt to develop a minor bullish correction in price and test the resistance level near the 1.3205 area. Then, a downward bounce and a continuation of the decline in the Forex currency pair. The potential target for such a movement of the instrument lies below the 1.3005 level.
Canadian Dollar Forecast for June 21, 2023
An additional signal in favor of a decline in Canadian Dollar quotes would be a test of the resistance line on the Relative Strength Index indicator. A second signal in favor of a decline would be a bounce off the upper boundary of the descending channel. The scenario of a decline in the USD/CAD currency pair would be invalidated by a strong rise and a breakthrough of the 1.3355 area. This would indicate a breakout of the resistance area and a continuation of the quotes’ rise to the area above the 1.3605 level. Confirmation of the pair’s decline should be expected with a breakthrough of the support area and the closure of USD/CAD quotes below the 1.3075 level, indicating a breakout of the lower boundary of the descending channel, which would signal a decline of the pair by the width of the channel.
Canadian Dollar Forecast for June 21, 2023 suggests an attempt to test the resistance area near the 1.3205 level, followed by a continuation of the decline to the area below the 1.3005 level. A test of the trend line on the Relative Strength Index indicator supports the decline of the Canadian Dollar in the Forex market. The scenario of USD/CAD quote decline would be invalidated by a strong rise and a breakthrough of the 1.3355 level, indicating a continuation of the asset’s rise with a potential target above the 1.3605 level.
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