Currency pair US dollar Canadian Dollar USD/CAD continues to move within the framework of a slight growth and the beginning of the development of the reversal pattern “Wedge”. At the time of publication of the forecast, the US Dollar to the Canadian Dollar is 1.2841. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken through the area between the signal lines down, which indicates pressure from sellers and a potential continuation of the price pair’s fall in the near future. At the moment, we should expect an attempt to develop a price correction and a test of the support level near the area of 1.2795. Further, a rebound upwards and continued growth of the currency pair on Forex. The potential target of such movement of the instrument is the area above the level of 1.3145.
USD/CAD Forecast Canadian Dollar August 5, 2022
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 index (RSI). The second signal in favor of the rise will be a rebound from the upper border of the bullish “Wedge” pattern. Cancellation of the growth option for the USD/CAD currency pair on Forex will be a fall and a breakdown of the 1.2595 area. This will indicate a breakdown of the support area and a continued fall in quotes to the area below the level of 1.2415. It is worth waiting for confirmation of the growth of the pair with the breakdown of the resistance area and the closing of the quotes of the USD/CAD pair above the level of 1.2935, which will indicate the breakdown of the upper border of the “Wedge” reversal pattern and the beginning of this pattern with targets at the top.
Among the important news from Canada that may have an impact on the USD/CAD pair, it is worth highlighting: Canada Employment Change, Ivey Canada Purchasing Managers Index (PMI)).
Thus, USD/CAD Forecast Canadian Dollar August 5, 2022 suggests an attempt to test the support area near the level of 1.2795. Further, continued growth to the area above the level of 1.3145. 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 index (RSI). Cancellation of the growth option for USD/CAD quotes will be a fall and a breakdown of the level of 1.2595. This will indicate a continued decline in the value of the asset with a potential target below the level of 1.2415.