The currency pair US Dollar Canadian Dollar (USD/CAD) continues its movement within the framework of a corrective development and a bear channel. At the time of this forecast’s publication, the USD/CAD exchange rate is at 1.3879. Moving averages indicate the presence of a short-term bearish trend for this currency pair. Prices broke through the area between signal lines downwards, which indicates pressure from sellers and potential continuation of the fall in the price pair already soon. Currently, it’s worth considering an attempt to develop a bear correction in the Canadian Dollar price and testing the support level close to the 1.3935 zone. A subsequent upward bounce and continued growth in the currency pair on Forex is expected. The potential target of such a movement in this instrument would be the area above the 1.4035 level.
Canadian Dollar Forecast USD/CAD for May 23, 2025
Additional signals in favor of the rise in the Canadian Dollar quotations will be a test of the support line on the Relative Strength Index (RSI). A second signal for a decline would be a rebound from the lower border of the bullish channel. Cancellation of the USD/CAD currency pair growth option on Forex comes with a drop below the area 1.3765. This indicates a break of the support zone and further fall in quotations to an area below the level 1.3585. To expect confirmation of growth for the pair, anticipate breaking through the resistance area and closing quotations of the USD/CAD pair above the level 1.3945, which signals breaking through the upper border of the corrective channel.
Canadian Dollar Forecast USD/CAD for May 23, 2025envisages a test of the support area near the level of 1.3935. Afterwards, continuation of the decline to an area above the level of 1.4035. An additional signal in favor of the growth of the Canadian Dollar on Forex would be a retest of the trend line on the relative strength indicator. Cancellation of the scenario of upward price movement in USD/CAD will occur with a drop and a breakout below the level of 1.3765, which will indicate continued depreciation of the asset’s value with a potential target below the level of 1.3585.
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