Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the fall and the formation of the “Wedge” reversal pattern. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.2623. Moving averages indicate a short-term bearish trend for the pair. Prices broke down the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall in the pair of prices in the near future. At the moment, we should expect an attempt to develop a decline and a test of the support level near the 1.2565 area. Further, an upward rebound 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 1.3095.
USD/CAD Forecast Canadian Dollar January 22, 2021
An additional signal in favor of raising the Canadian Dollar quotes will be a test of the trend line on the relative strength index (RSI). The second signal in favor of growth will be a rebound from the lower boundary of the “Wedge” model. Cancellation of the option to raise the USD/CAD currency pair on Forex will be a fall and a breakdown of the 1.2445 area. This will indicate a breakdown of the support area and a continued decline in quotations to the area below 1.2205. It is worth waiting for confirmation of the growth of the pair with the breakdown of the resistance area and closing of the USD/CAD quotes above the level of 1.2775, which will indicate the completion of the formation of the “Wedge” reversal pattern.
Among the important news from Canada that may have an impact on the USD/CAD pair, it is worth highlighting: Canada Core Retail Sales m/m.
USD/CAD Forecast Canadian Dollar January 22, 2021 suggests an attempt to test the support area near the level of 1.2565. Further, continued growth to the area above the level of 1.3095. 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 the USD/CAD quotes will be a fall and a breakdown of the level of 1.2445. This will indicate a continued decline in the value of the asset with a potential target below 1.2205.
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