Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the growth and the formation of a bearish pattern ”5-0”. At the time of the publication of the forecast, the rate of the US Dollar to the Canadian Dollar is 1.2766. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through the area between the signal lines upward, 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 price rise and test the resistance level near the 1.2795 area. Further, the rebound and the continuation of the fall of the currency pair on Forex. The potential target of such a movement of the instrument is the area below the level of 1.2585.
USD/CAD Forecast Canadian Dollar January 7, 2022
An additional signal in favor of reducing the Canadian Dollar quotes will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of a decline will be a rebound from the upper border of the bearish 5-0 pattern. Cancellation of the option to drop the USD/CAD currency pair at FOREX will be a strong growth and a breakdown of the 1.2865 area. This will indicate a breakdown of the resistance area and continued growth of quotations to the area above the level of 1.3045. It is worth waiting for confirmation of the pair’s fall with the breakdown of the support area and closing of the USD/CAD pair quotes below 1.2675, which will indicate a breakdown of the lower border of the bullish correction channel.
Among the important news from Canada, which may have an impact on the USD/CAD pair, it is worth highlighting: Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast Canadian Dollar January 7, 2022 suggests an attempt to test the resistance area near the level of 1.2795. Further, the continuation of the fall to the area below the level of 1.2585. An additional signal in favor of a decline in the Canadian Dollar on Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to reduce the USD/CAD quotes will be a strong growth and a breakdown of the level of 1.2865. This will indicate a continued rise in the value of the asset with a potential target above the level of 1.3045.
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