Currency pair US Dollar Canadian Dollar USD/CAD continues to move within the framework of the fall and the formation of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the US Dollar to Canadian Dollar exchange rate is 1.4030. Moving averages indicate a short-term bullish trend for the pair. Prices have broken through the area between the signal lines upwards, which indicates pressure from buyers and potential continuation of the price pair growth in the near future. At the moment, it is worth considering an attempt to develop the rise in the Canadian Dollar price and test the resistance level near the 1.4065 area. Then, a rebound downwards and continuation of the fall of the currency pair on Forex. The potential target of such movement of the instrument is the area below the level of 1.3875.
Canadian Dollar Forecast USDCAD for December 6, 2024
An additional signal in favor of a fall in Canadian Dollar quotes will be a test of the bearish trend line on the relative strength indicator. The second signal in favor of a decline will be a rebound from the upper border of the “Head and Shoulders” reversal pattern. The cancellation of the fall option for the USD/CAD currency pair on Forex will be a strong growth and a breakout of the 1.4145 area. This will indicate a breakout of the resistance area and continued growth of quotes to the area above 1.4365. Expect confirmation of the pair’s fall with a breakout of the support area and closing of the USD/CAD quotes below 1.3975, which will indicate a breakout of the lower border of the reversal pattern and the beginning of the pattern implementation with targets below.
Canadian Dollar Forecast USDCAD for December 6, 2024 suggests an attempt to test the resistance area near the level of 1.4065. Further, a continuation of the fall to the area below the level of 1.3875. An additional signal in favor of the decline of the Canadian Dollar on Forex will be a test of the trend line on the relative strength indicator. The cancellation of the option of a fall in USD/CAD quotes will be a strong growth and a breakout of the level of 1.4145. This will indicate continued growth in the asset’s value with a potential target above the level of 1.4365.
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