Currency pair US Dollar Canadian Dollar (USD/CAD) continues its movement within the context of developing a descending trend and forming a reversal pattern “Wedge”. At the time of this forecast, the USD/CAD exchange rate is at 1.3700. Moving averages indicate the presence of a short-term bearish trend for this currency pair. Prices have broken through the area between signal lines downwards, which indicates pressure from sellers and potential continuation of price drop soon. Currently, it would be appropriate to consider the development of a bear correction for the Canadian Dollar price and testing the support level close to the region 1.3655. A subsequent bounce upward and further growth of the currency pair on Forex. The potential target of such movement is an area above the 1.3895 level.
Canadian Dollar Forecast USD/CAD for June 5, 2025
Additional indication in favor of the rise in the Canadian Dollar quotations would be a test of the support line on the Relative Strength Index (RSI) indicator. The second signal in favor of growth is a bounce off the lower boundary of the reversal pattern “Clamp”. Cancellation of the USD/CAD currency pair’s growth option on Forex will occur with a drop below the area of 1.3505. This would indicate a break of the support zone and continuation of price drops to an area below the level of 1.3245. Expect confirmation of the rise in the pair after breaking through the resistance area and closing prices above the USD/CAD pair level at 1.3856, indicating a breakout of the upper boundary of the reversal pattern “Clamp” and the beginning of implementing the pattern with targets up.
Canadian Dollar Forecast USDCAD for June 5, 2025 predicts a test of the support area near the level 1.3655. Then, an increase towards levels above 1.3895. An additional signal in favor of the growth of the Canadian Dollar on Forex is a test of the support line on the Relative Strength Index (RSI). A reversal to the option of price rises in USD/CAD will be a drop and breaking the level 1.3505. This would indicate a continuation of the asset’s value decline with a potential target below the level 1.3245.
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