The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.3199. The pair continues to move within the correction after strong growth and the beginning of the formation of the ”Wedge” pattern. Moving averages indicate a bearish trend. Prices moved 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. At the moment, we should expect an attempt to develop a bearish correction and a test of the support level near the 1.3035 area. Then, the continued growth of quotations with a target above the level of 1.3615.
USD/CAD Forecast and Analysis October 19 — 23, 2020
A test of the support line on the relative strength index (RSI) will be in favor of the growth of the USD/CAD currency pair. The second signal will be a rebound from the Neck line of the ”Head and Shoulders” reversal pattern. Cancellation of the option of raising the quotes of the USD/CAD currency pair on the current trading session on October 19 — 23, 2020 will be a fall and a breakdown of the 1.2735 area. This will indicate a breakdown of the lower border of the channel and a continuation of the fall to the area below the level of 1.2305. Confirmation of the growth in the pair will be the breakdown of the resistance area and the closing of prices above the level of 1.3425.
Among the important news from Canada that may have an impact on the Canadian Dollar rate, it is worth highlighting: Canada Core Retail Sales m/m.
USD/CAD Forecast and Analysis October 19 — 23, 2020 suggests an attempt to test the support area near the level of 1.3035. Further, continued growth with a target above the level of 1.3615. An additional signal in favor of growth 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 1.2735 area. This will indicate a breakdown of the lower border of the channel and the continuation of the pair’s fall with a target below 1.2305.
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