This article will take a look at the Canadian Dollar Price Forecast to see if there is a breakout. We will see whether this particular pattern can be used as a reliable means of currency trading. This Forecast is focused on the Canadian Dollar and is mostly intended for our domestic US Dollar users.
I have been keeping track of the Canadian Dollar Price Forecast and the official prediction of the Canadian Central Bank is that the USD/CAD pair will hold around the level of 88. This is not surprising given the recent decline in the Canadian Dollar and the only negative is that it will move lower than its previous level of 86. But is this forecast too aggressive? Do we need to worry too much about the USD/CAD Resistance Pattern?
Indeed, the future paper speaks positively about this pattern. It is stated that the range for this pattern is quite long, which in its turn makes it an effective currency trading tool. One may think about buying or selling the currency at this point in the range and this may be the key to buy and sell successfully.
The price forecast for the Canadian Dollar is a bullish one, which means that the pair may not only be sustaining but is also looking at a possible break of the %88 Resistance level. This being said, I am looking forward to seeing how the future paper will write this article and see if the break of the %88 Resistance level is accurate. Given that this is only a Forecast and not a Certainty, I will not be overly confident and am still open to the possibility of a breakout.
This can be seen from a market that is seen in a natural rhythm and in the face of strong economic support. Once the economic condition improves, these patterns will fall away. The next thing I am looking at is the Canadian Dollar Price Forecast to see if there is a potential breakout.
One has to consider that the Support Level in the US Dollar Market is also located at the very low point of the downtrend and this is where one should position their currency when they are looking to capitalize on a potential uptrend. This is not seen to be the case with the Canadian Dollar and this is a key area that could prove to be more active in times of weakening US Dollar and of course when the USD/CAD pair is holding well above the Support Level.
Now let us look at the analysis of the Canadian Dollar Price Forecast to see if there is a break to be had. Since the trend is currently showing a bounce around the 89.50 level, the pair could be about to move towards the next Support Level which is usually at the upper end of the %89 Resistance Level.
In my view, this Support Level will prove to be the last of the major resistance levels and in my opinion it is the most important one. I have also analyzed the US Dollar Price Forecast and this Support Level is near where I would expect the USD/CAD pair to move to next.
If one looks at the chart and finds the %89 Resistance Level it is one of the highest and has also been the most stable zone in the past few months. It is also slightly above the next Support Level, which is the 90.80 level. One can also find the %88 Support Level and this is the strongest and more obvious of the remaining resistance levels.
Some traders may wonder why the next Support Level is not reached, but in my view, it is because of the %89 Resistance Level. And as soon as this Support Level falls, the pair will likely find its next resistance level at the 89.40 Support Level.