The USD/CAD currency pair continues to move within the framework of a correction and the formation of a head and shoulders reversal pattern. At the time of publication, the US dollar to Canadian dollar exchange rate is 1.3628. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through the area between the signal lines downwards, indicating pressure from sellers and a potential continuation of the pair’s decline soon. Now, it is worth considering an attempt to develop a decline in the Canadian dollar price and a test of the support level near the 1.3585 area. Further, a rebound upward and a continuation of the currency pair’s growth on Forex. The potential target for such a movement of the instrument is the area above the 1.3865 level.
Canadian Dollar Forecast USD/CAD for July 2, 2025
An additional signal in favor of the growth of the Canadian dollar quotes will be a test of the support line on the relative strength index (RSI). The second signal in favor of the rise will be a rebound from the lower border of the “Head and Shoulders” reversal pattern. A fall and breakout of the 1.3505 area will cancel the growth scenario for the USD/CAD currency pair on Forex. This will indicate a breakout of the support area and a continuation of the decline in quotes to below the 1.3325 level. Confirmation of the pair’s growth should be expected with a breakout of the resistance area and the closing of the USD/CAD pair above the 1.3785 level, which will indicate a breakout of the upper border of the Head and Shoulders reversal pattern and the beginning of the pattern’s implementation with targets at the top.
Canadian Dollar Forecast USD/CAD for July 2, 2025suggests an attempt to test the support area near the 1.3585 level. Further, growth will continue to the area above the 1.3865 level. An additional signal in favor of the rise of the Canadian dollar on Forex will be a test of the support line on the relative strength indicator. A fall and breakout of the 1.3505 level will cancel the USD/CAD growth scenario. This will indicate a continuation of the decline in the asset’s value with a potential target below the 1.3325 level.
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