Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the decline and the formation of the «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.3219. Moving averages indicate a short-term bearish trend for the pair. Prices are testing the areas between the signal lines, which indicates pressure from sellers and a potential continuation of the fall in prices in the near future. At the moment, we should expect an attempt to develop a fall and a test of the support level near the 1.3155 area. Further, an upward rebound and continued growth of the currency pair on Forex. A potential target of such a movement of the instrument is the area above the level of 1.3465.
USD/CAD Forecast Canadian Dollar August 21, 2020
An additional signal in favor of raising the Canadian Dollar quotes will be a test of the rising trend line on the relative strength index (RSI). The second signal in favor of a rise will be a rebound from the upper boundary of the «Wedge» pattern. Cancellation of the growth option for USD/CAD at Forex will be a fall and a breakdown of the 1.3065 area. This will indicate a breakdown of the support area and a continued fall in quotations to the area below the level of 1.2765. Expect an acceleration of the pair’s rise with the breakdown of the resistance area and the closing of the USD/CAD quotes above the level of 1.3275, which will indicate a breakdown of the upper border of the «Head and Shoulders» model.
Among the important news from Canada that may have an impact on the USD/CAD pair rate, it is worth highlighting: Canada Retail Sales m/m, Canada Core Retail Sales m/m.
USD/CAD Forecast Canadian Dollar August 21, 2020 suggests an attempt to test the support area near the level of 1.3155. Further, continued growth to the area above the level of 1.3465. An additional signal in favor of the rise of 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 1.3065. This will indicate a continued decline in the value of the asset with a potential target below 1.2765.
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