The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2990. The pair continues to move as part of the correction and the formation of the “Wedge” reversal pattern. Moving averages indicate a bearish trend. Prices went down from the area between the signal lines, which indicates pressure from the sellers of the currency pair and a potential continuation of the fall. an attempt to develop a decline and test the support level near the area of 1.2935. Then, continued growth of quotations with a target above the level of 1.3965.
USD/CAD Forecast and Analysis November 30 — December 4, 2020
An additional signal in favor of raising the USD/CAD currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the Wedge reversal pattern. Cancellation of the option of raising the quotes of the USD/CAD currency pair on the current trading November 30 — December 4, 2020 will be a fall and a breakdown of the 1.2665 area. This will indicate a breakdown of the lower boundary of the model and a continuation of the fall to the area below the level of 1.2445. Confirmation of the growth in the pair will be the breakdown of the resistance area and the closing of prices above the level of 1.3325, which will indicate a breakdown of the upper boundary of the “Wedge” model.
Among the important news from Canada that may have an impact on the Canadian Dollar rate, it is worth highlighting: Canada Gross Domestic Product (GDP) m/m, Canada Employment Change.
USD/CAD Forecast and Analysis November 30 — December 4, 2020 implies an attempt to test the support area near the level of 1.2935. Further, continued growth with a target below 1.3965. An additional signal in favor of the rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth development option will be a fall and a breakdown of the 1.2665 area. This will indicate a breakdown of the lower boundary of the reversal pattern and the continuation of the pair’s fall with a target below 1.2445.
