The currency pair USD/CAD continues to move as part of the development of growth and the completion of the formation of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the US Dollar to Canadian Dollar exchange rate is 1.3719. Moving averages indicate a short-term bullish trend for the pair. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers and a potential continuation of the fall of the price pair in the near future. At the moment, it is worth considering an attempt to develop a price decline and a test of the support level near the 1.3665 area. Next, a rebound upwards and continued growth of the currency pair on Forex. The potential target for such a movement of the instrument is the area above the level of 1.3875.
Canadian Dollar Forecast for May 31, 2024
An additional signal in favor of an increase in Canadian Dollar quotes will be a test of the support line on the relative strength index (RSI). The second signal in favor of growth will be a rebound from the lower boundary of the bullish channel. Cancellation of the growth option for the USD/CAD currency pair on Forex will be a fall and a breakdown of the 1.3565 area. This will indicate a breakdown of the support area and a continued decline in quotes to the area below the level of 1.3285. Expect confirmation of the pair’s growth with a breakdown of the resistance area and closing of quotes for the USD/CAD pair above the level of 1.3765, which will indicate a breakdown of the upper boundary of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets above.
Canadian Dollar Forecast for May 31, 2024 suggests an attempt to test the support area near the level of 1.3665. Further, continued growth to the area above the level of 1.3875. An additional signal in favor of a rise in the Canadian Dollar on Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option for USD/CAD quotes will be a fall and a breakdown of the level of 1.3565. This will indicate a continued decline in the value of the asset with a potential target below the level of 1.3285.
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