Currency pair US Dollar Canadian Dollar USD/CAD continues to move within the framework of growth development and 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 1.3850. Moving averages indicate a short-term upward trend for the pair. Prices have broken through the area between the signal lines upwards, which indicates pressure from buyers and potential continued growth of the price pair in the near future. At the moment, it is worth considering an attempt to develop the growth of the Canadian Dollar price and a test of the resistance level near the 1.3875 area. Next, a rebound downwards and a 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 1.3665.
Canadian Dollar Forecast USDCAD for August 7, 2024
An additional signal in favor of a fall 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 decline will be a rebound from the upper border of the “Head and Shoulders” reversal pattern. Cancellation of the option of a fall in the USD/CAD currency pair on Forex will be a strong growth and a breakout of the 1.3965 area. This will indicate a breakout of the resistance area and continued growth of quotes to the area above the 1.4135 level. Expect confirmation of the pair’s fall with a breakout of the support area and closing of the USD/CAD quotes below 1.3765, which will indicate a breakout of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
Canadian Dollar Forecast USDCAD for August 7, 2024 suggests an attempt to test the resistance area near 1.3875. Further, the continuation of the fall to the area below 1.3665. An additional signal in favor of the decline of the Canadian Dollar on Forex will be a test of the trend line on the relative strength indicator. Cancellation of the option of a fall in USD/CAD quotes will be a strong growth and a breakout of the 1.3965 level. This will indicate continued growth in the value of the asset with a potential target above 1.4135.
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