Currency pair US dollar Canadian Dollar USD/CAD continues to move within the framework of the correction and the formation of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the US Dollar to the Canadian Dollar is 1.2930. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from sellers and a potential continuation of the fall in the price pair in the near future. At the moment, we should expect an attempt to develop the price growth and test the resistance level near the area of 1.2975. Further, a rebound down and the 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 1.2735.
USD/CAD Forecast Canadian Dollar June 23, 2022
An additional signal in favor of falling quotes of the Canadian Dollar will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of the decline will be a rebound from the lower border of the bullish channel, as well as the formation of the “Head and Shoulders” reversal pattern. Cancellation of the option to reduce the USD/CAD currency pair on Forex will be a strong growth and a breakdown of the 1.3105 area. This will indicate a breakdown of the resistance area and continued growth of quotes to the area below the level of 1.3345. It is worth waiting for confirmation of the fall of the pair with the breakdown of the support area and the closing of the quotes of the USD/CAD pair below the level of 1.2875, which will indicate the breakdown of the lower border of the “Head and Shoulders” reversal pattern.
Important news from Canada, which may affect the rate of the USD/CAD pair, is not expected, so the pair will continue to move as part of the technical analysis.
Thus, ., continuation of the fall to the area below the level of 1.2735. An additional signal in favor of a decrease in the Canadian Dollar at Forex will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of falling USD/CAD quotes will be a strong growth and a breakdown of the level of 1.3105. This will indicate a continued growth in the value of the asset with a potential target above the level of 1.3345.