Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of the correction and the formation of an inverted “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 1.2637. Moving averages indicate a short-term bullish trend for the pair. Prices are 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 develop a downward correction and a test of the support level near the 1.2595 area. Further, a rebound upward and a continuation of the rise of the currency pair on Forex. The potential target of such a movement of the instrument is the area above the level of 1.2805.
USD/CAD Forecast Canadian Dollar March 5, 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 upper border of the descending channel, as well as the formation of a “Head and Shoulders” reversal pattern. Cancellation of the option to raise the USD/CAD currency pair on Forex will be a fall and a breakdown of the 1.2565 area. This will indicate a breakdown of the support area and a continued fall in quotations to the area below the level of 1.2265. It is worth waiting for confirmation of the rise in the pair with the breakdown of the resistance area and closing of the USD/CAD quotes above the level of 1.2715, which will indicate the completion of the formation of the “Head and Shoulders” reversal pattern.
Among the important news from Canada that may have an impact on the rate of the USD/CAD pair, it is worth highlighting: Ivey Canada Purchasing Managers Index (PMI).
USD/CAD Forecast Canadian Dollar March 5, 2021 suggests an attempt to test the support area near the level of 1.2595. Further, continued growth to the area above the level of 1.2805. 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 1.2565. This will indicate a continued decline in the value of the asset with a potential target below 1.2265.
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