The currency pair USD/CAD continues to move within the development of a bullish correction and a bearish channel. At the time of the forecast publication, the exchange rate of the US Dollar against the Canadian Dollar is 1.3227. 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 pressure from sellers and a potential continuation of the price decline in the near future. Currently, it is worth considering an attempt to develop a minor bullish price correction and test the resistance level near the 1.3255 area. This would be followed by a downward rebound and a continuation of the decline in the Forex currency pair. The potential target for such a movement of the instrument is an area below the 1.3025 level.
Canadian Dollar Forecast for June 22, 2023
An additional signal in favor of a decline in the Canadian Dollar quotes will be a test of the resistance line on the relative strength indicator. The second signal in favor of a decrease will be a rebound from the upper boundary of the descending channel. The cancellation of the scenario of the USD/CAD currency pair’s decline in Forex will occur with a strong rise and a breakthrough above the 1.3355 area. This would indicate a breakthrough of the resistance area and a continuation of the rise in quotes towards an area above the 1.3605 level. Confirmation of the pair’s decline should be expected with a breakthrough of the support area and the closing of the USD/CAD pair’s quotes below the 1.3075 level.
Canadian Dollar Forecast for June 22, 2023 suggests an attempt to test the resistance area near the 1.3255 level, followed by a continuation of the decline towards an area below the 1.3025 level. An additional signal in favor of a decrease in the Canadian Dollar in Forex will be a test of the trend line on the relative strength indicator. The cancellation of the USD/CAD currency pair’s decline scenario will occur with a strong rise and a breakthrough above the 1.3355 level. This would indicate a continuation of the asset’s price increase with a potential target above the 1.3605 level.
