Currency pair US Dollar to Canadian Dollar USD/CAD continues to move as part of a strong fall and the beginning of 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 1.3163. Moving averages indicate a short-term bearish trend for the pair. Prices returned below the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall in the pair in the near future. At the moment, we should expect an attempt to develop a decline and test the support level near the 1.3080 area. Further, an upward rebound and continued growth of the currency pair on Forex. A potential target of such a movement of the instrument is the area above the level of 1.3375.
USD/CAD Forecast Canadian Dollar October 28, 2020
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 Neck line of the Head and Shoulders reversal pattern. Cancellation of the option to raise USD/CAD on Forex will be a fall and a breakdown of the 1.3075 area. This will indicate a breakdown of the support area and a continued fall in quotations to the area below the level of 1.2845. Expect acceleration of the pair’s growth with the breakdown of the resistance area and closing of the USD/CAD quotes above the level of 1.3210.
Among the important news from Canada that may have an impact on the USD/CAD pair, it is worth highlighting: Bank of Canada (BoC) Interest Rate Decision, Bank of Canada (BoC) Monetary Policy Report Press Conference.
USD/CAD Forecast Canadian Dollar October 28, 2020 suggests an attempt to test the support area near the level of 1.3080. Further, continued growth to the area above the level of 1.3375. An additional signal in favor of a rise in 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 1.3075. This will indicate a continued fall in the value of the asset with a potential target below 1.2845.
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