The USD/CAD currency pair continues to move within the framework of the development of the fall and the formation of the “Wedge” model. At the time of publication of the forecast, the US Dollar to Canadian Dollar exchange rate is 1.3810. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers and a potential continuation of the pair’s decline in the near future. At the moment, it is worth considering an attempt to develop the decline in the Canadian Dollar price and test the support level near the 1.3725 area. Next, an upward rebound and continued growth of the currency pair on Forex. The potential target of such movement of the instrument is the area above the 1.4185 level.
Canadian Dollar Forecast USDCAD for May 6, 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 indicator. The second signal in favor of the fall will be a rebound from the lower border of the descending channel. The cancellation of the growth option of the USD/CAD currency pair on Forex will be a fall and a breakout of the 1.3605 area. This will indicate a breakout of the support area and a continuation of the fall in quotes to the area below the 1.3345 level. Confirmation of the pair’s growth should be expected with a breakout of the resistance area and closing of the USD/CAD quotes above 1.3895, which will indicate a breakout of the upper border of the “Wedge” reversal pattern and the beginning of the pattern’s implementation with targets at the top.
Canadian Dollar Forecast USDCAD for May 6, 2025 suggests an attempt to test the support area near 1.3725. Further, continued growth to the area above 1.4185. An additional signal in favor of the rise of the Canadian Dollar on Forex will be a test of the trend line on the relative strength indicator. The cancellation of the growth option for USD/CAD quotes will be a fall and a breakout of 1.3605. This will indicate a continued decline in the asset’s value with a potential target below 1.3345.
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