The currency pair Canadian Dollar to US Dollar USD/CAD ends the trading week with a fall near the level of 1.3638. The pair continues to move as part of the development of growth and the formation of a large “Head and Shoulders” reversal pattern. Moving averages indicate a bullish trend. Prices have broken through the area between the signal lines upward, which indicates pressure from buyers of the currency pair and potential continued growth in the near future. At the moment, we should expect an attempt to develop growth and a test of the resistance level near the 1.3725 area. Then, a rebound downwards and a continuation of the fall in quotes with a target below the level of 1.2975.
USD/CAD Forecast May 20 — 24, 2024
An additional signal in favor of a fall in the USD/CAD currency pair will be a test of the bearish trend line on the relative strength index (RSI). The second signal will be a rebound from the upper boundary of the Head and Shoulders reversal pattern. Cancellation of the option of falling quotes of the USD/CAD currency pair in the current trading week of May 20 — 24, 2024 will be a strong growth and a breakdown of the 1.4045 area. This will indicate a breakdown of resistance and continued growth to the area above the level of 1.4405. Confirmation of a fall in the pair will be a breakdown of the lower boundary of the bullish channel and closing of the price below the level of 1.3455, which will indicate a breakdown of the lower boundary of the bullish correction channel.
USD/CAD Forecast May 20 — 24, 2024 suggests an attempt to develop a bullish correction and test the resistance area near the 1.3725 level. Further, continuation of the fall with the target below the level of 1.2975. An additional signal in favor of a decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the downward development option will be a strong growth and a breakdown of the 1.4045 area. This will indicate a breakdown of an important resistance level and continued growth with a target above 1.4405.
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