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, as well as the «Triangle» pattern. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.3203. 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 1.3160 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 1.3435.
USD/CAD Forecast Canadian Dollar August 26, 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 the rise will be the completion of the formation of the «Head and Shoulders» reversal 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 continuation of the fall in quotations to the area below the level of 1.2805 as part of the development of the «Triangle» model. 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 descending channel.
USD/CAD Forecast Canadian Dollar August 26, 2020 suggests an attempt to test the support area near the level of 1.3160. Further, continued growth to the area above the level of 1.3435. 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 1.2805.
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