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 publishing the forecast, the US Dollar to Canadian Dollar exchange rate stands at 1.3976. Moving averages indicate a short-term bullish trend for this pair. Prices broke through the area between signal lines upwards, indicating pressure from buyers and potential continuation of price growth soon. Currently, it is advisable to consider the attempt of price decline on the Canadian Dollar and testing the support level near the area 1.3935. A subsequent upward bounce and continued growth in the Forex currency pair follow. The potential target for such movement of this instrument would be an area above the 1.4095 level.
Canadian Dollar Forecast USDCAD for May 16, 2025
Additional bullish signal for the Canadian Dollar’s price rise would be a test of the Relative Strength Index (RSI) support line. A bearish signal will occur with a bounce off the lower boundary of the descending channel. A reversal of the USD/CAD currency pair’s upward variant on Forex becomes evident when it drops and breaks the area at 1.3855, indicating a breakthrough of the support zone, followed by further price drop below the level of 1.3625. For confirmation of growth in the pair, one should wait for breaking through resistance areas with closure of the USD/CAD pair’s quotes above the level of 1.3995.
Canadian Dollar Forecast USDCAD for May 16, 2025 anticipates a test of the support area near the level 1.3935. Subsequently, continuation of growth to levels above 1.4095. An additional signal in favor of the Canadian Dollar’s rise on Forex would be testing the trend line on the Relative Strength Index (RSI) indicator. Cancellation of the price hike option for USD/CAD quotes will be a drop and breaking through the level 1.3855, which will indicate continuation of the asset value decline with a potential target below the level 1.3625.
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