Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of a minor correction and the formation of a «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the exchange rate of the US Dollar to the Canadian Dollar is 1.3281. Moving averages indicate the presence of a short-term bullish trend for the pair. At the moment, we should expect an attempt to grow and test the resistance level near the area of 1.3315. Further, the rebound and continued fall of the currency pair on FOREX. The potential target of such a movement of the instrument is the area below the level of 1.3065, where we can expect the completion of the formation of the reversal model and the likely resumption of the bullish trend.
USD/CAD Forecast Canadian Dollar February 7, 2020
An additional signal in favor of falling quotes of the Canadian Dollar will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the rise will be a rebound from the resistance area, as we see, prices previously pushed from this level. Cancellation of the option of falling USD/CAD on FOREX will be a strong growth and a breakdown of the area of 1.3385. This will indicate a breakdown of the resistance area and a continued rise in quotations to the area above the area of 1.3585. Expect to accelerate the fall of the pair is with the breakdown of the lower border of the rising channel and the closing of the pair USD/CAD below the level of 1.3175.
Among the important news from Canada, which may affect the USD/CAD exchange rate, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast Canadian Dollar February 7, 2020 suggests an attempt to test the resistance area near the level of 1.3315. Further, the continuation of the fall to the area below the level of 1.3065. An additional signal in favor of reducing the Canadian Dollar at Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of falling quotes USD/CAD will be a strong growth and the breakdown level of 1.3385. This will indicate continued growth with a potential target above the level of 1.3585.
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