Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the fall 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 1.2674. Moving averages indicate a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers and a potential continuation of the growth of the price pair in the near future. At the moment, we should expect an attempt to continue the development of the correction and test the support level near the 1.2545 area. Further, a rebound upward and a continuation of the rise of the currency pair on Forex. A potential target of such a movement of the instrument is the area above the level of 1.2975.
USD/CAD Forecast Canadian Dollar December 8, 2021
An additional signal in favor of raising the Canadian Dollar quotes will be a test of the broken trend line on the relative strength index (RSI). The second signal in favor of the rise will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. Cancellation of the growth option for the USD/CAD currency pair at Forex will be a fall and a breakdown of the 1.2275 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 1.2005. It is worth waiting for confirmation of a rise in the pair with the breakdown of the resistance area and closing of the USD/CAD quotes above the level of 1.2925, which will indicate a breakdown of the upper border of the “Head and Shoulders” model.
Among the important news from Canada that may affect the rate of the USD/CAD pair, it is worth highlighting: Bank of Canada (BoC) Interest Rate Decision.
USD/CAD Forecast Canadian Dollar December 8, 2021 suggests an attempt to test the support area near the level of 1.2545. Further, continued growth to the area above the level of 1.2975. An additional signal in favor of raising 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 the USD/CAD quotes will be a fall and a breakdown of the level of 1.2275. This will indicate a continued decline in the value of the asset with a potential target below the level of 1.2005.
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