The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2725. The pair continues to move within the framework of the correction and the downward channel, here an inverted “Head and Shoulders” reversal pattern is formed. 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 bullish correction and a test of the support level near the 1.2635 area. Then, a rebound upward and the beginning of the rise in quotations with a target above the level of 1.3505.
USD/CAD Forecast and Weekly Analysis February 15 — 19, 2021
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 inverted “Head and Shoulders” pattern. Cancellation of the growth option for the USD/CAD currency pair quotes on the current trading week on February 15 — 19, 2021 will be a fall and a breakdown of the 1.2465 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 1.2075. Confirmation of the growth in the pair will be the breakdown of the resistance area and the closing of the price above the level of 1.2955, which will indicate a breakdown of the upper border of the “Head and Shoulders” reversal pattern.
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 Weekly Analysis February 15 — 19, 2021 suggests an attempt to test the support area near the level of 1.2635. Further, continued growth with a target above the level of 1.3505. 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 1.2465 area. This will indicate a breakdown of the lower boundary of the “Head and Shoulders” model and the continuation of the fall of the pair with a target below 1.2075.
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