The pair Canadian Dollar to US Dollar USD/CAD ends the trading week near the level of 1.2805. The pair continues to move as part of the growth and formation of an inverted Head and Shoulders pattern. Moving averages indicate a bearish trend. Prices broke through the area between the signal lines upward, which indicates pressure from buyers of the currency pair and a potential continued growth. At the moment, we should expect an attempt to develop a correction and a test of the support level near the 1.2585 area. Then, a rebound upward and the beginning of the rise in quotations with a target above the level of 1.3305.
USD/CAD Weekly Forecast December 6 — 10, 2021
An additional signal in favor of a rise in the USD/CAD currency pair will be a test of the support line on the relative strength index (RSI), now a test of the resistance of this line is taking place, which means that a rise in prices should not be expected from current levels. The second signal will be a rebound from the lower border of the ”Triangle” pattern. Cancellation of the option to raise the quotes of the USD/CAD currency pair in the current trading week December 6 — 10, 2021 will be a fall and a breakdown of the 1.2315 area. This will indicate a breakdown of support and a continuation of the fall to the area below the level of 1.1965. The confirmation of the rise in the pair will be 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 “Head and Shoulders” model, but it is worth waiting for the formation of the right “Shoulder” of the model and only there to make purchases.
Important news from Canada that may have an impact on the Canadian Dollar rate is worth highlighting: Bank of Canada (BoC) Interest Rate Decision.
USD/CAD Weekly Forecast December 6 — 10, 2021 suggests an attempt to test the support area near the level of 1.2585. Further, continued growth with a target above the level of 1.3305. 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 1.2315 area. This will indicate a breakdown of important support and a continued decline in the rise with a target below 1.1965.
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