The pair Canadian Dollar to US Dollar USD/CAD completes the trading week near the level of 1.2783. The pair continues to move within the correction and the bullish channel. The potential for the formation of a reversal pattern “Wedge” remains. Moving averages indicate a bullish trend. Prices are rebounding from the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continuation of growth in the near future. At the moment, we should expect an attempt to develop a correction and test the support level near the area of 1.2695. Then, a rebound upwards and the continuation of the rise in quotes with a target above the level of 1.3445.
USD/CAD Weekly Forecast August 15 — 19, 2022
An additional signal in favor of the rise of the USD/CAD currency pair will be a test of the trend line on the relative strength index, as we can see, since the beginning of last year, the indicator values have rebounded from this line upwards. We can say that this is a long-term support line on the RSI indicator chart, the breakdown of which will indicate the completion of the growth of the currency pair. The second signal will be a rebound from the lower boundary of the bullish channel, as well as from the lower boundary of the “Wedge” reversal pattern. Cancellation of the option to raise the quotes of the USD/CAD currency pair in the current trading week of August 15 — 19, 2022 will be a fall and a breakdown of the area of 1.2425. This will indicate a breakdown of support and a continuation of the fall to the area below the level of 1.2105. The rise in the pair will be confirmed by the breakdown of the resistance area and the closing of the price above the level of 1.3005, which will indicate the breakdown of the upper border of the “Wedge” reversal pattern and the beginning of the development of this model with targets at the top.
Among the important news from Canada that may have an impact on the Canadian Dollar, it is worth highlighting: Canada Core Retail Sales m/m.
USD/CAD Weekly Forecast August 15 — 19, 2022 suggests an attempt to test the support area near the level of 1.2695. Further, continued growth with the target above the level of 1.3445. An additional signal in favor of the rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth development option will be a fall and a breakdown of the 1.2425 area. This will indicate a breakdown of important support and a continued decline in the rise with a target below 1.2105.
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