The Canadian Dollar to US Dollar (USD/CAD) currency pair is ending the trading week with a bullish correction, but remains within a descending channel. Potential for a Head and Shoulders reversal pattern remains. Moving averages indicate a bearish trend. Prices are again testing the area between the signal lines, indicating growing selling pressure on the currency pair and potential continued decline in the near future. Currently, we expect an attempt at a bullish correction and a test of the resistance level near 1.3825. This should be followed by a downward rebound and continued decline with a target below 1.3245.
USD/CAD Weekly Forecast May 18 – 22, 2026
An additional signal favoring a decline in the USD/CAD currency pair will be a test of the resistance line on the relative strength indicator (RSI). The second signal will be a rebound from the upper boundary of the Head and Shoulders reversal pattern. A strong rally and a breakout of the 1.4045 area will cancel out the downward trend for the USD/CAD currency pair during the current trading week of May 18-22, 2026. This will indicate a breakout of resistance and continued growth above 1.4375. A decline in the pair will be confirmed by a breakout of support and a price close below 1.3465, which will indicate a breakout of the lower boundary of the Head and Shoulders pattern and the beginning of the pattern’s implementation with targets below.
USD/CAD Weekly Forecast May 18 – 22, 2026 suggests an attempt to develop a bullish correction and test the resistance area near 1.3825. Further decline is then expected with a target below 1.3245. A test of the resistance line on the relative strength indicator (RSI) will serve as an additional signal for a decline. A strong rally and a breakout of the 1.4045 area would cancel out the downward scenario. This would indicate a breakout of a key resistance level and a continued rise with a target above 1.4375.
