Canadian Dollar Forecast: USD/CAD Falling Wedge Threatens Reversal

Beyond that, a big level of prior interest comes back into the equation and that runs from 1.2952-1.3000. This is the zone that had helped to set support around last year’s open; and this area came back into play a few weeks ago when USD/CAD prices spiked up to lower-high resistance.

USD/CAD FOUR-HOUR PRICE CHART

USDCAD Four Hour Price Chart

Chart prepared by James Stanley; USDCAD on Tradingview

USD/CAD LONGER-TERM: CAN A PULLBACK BECOME ANYTHING MORE?

Most reversals start as a simple pullback. The question as to whether or not that turns into a full-fledged reversal is going to remain, and in USD/CAD, that can be a difficult projection to get behind at the moment.

From the Daily chart below, we can see where bears have had control of the matter since March of last year. Along the way, the pair has fallen by as much as 13.9%. It also makes for a fairly clear picture of just how bearish matters have been in the pair and, at this stage, forecasting both short-term bearish trends and longer-term bearish trends to reverse seems like a bit of a stretch.

What could make that look more attractive is a topside breach and a re-claim of support back-above the 1.3000 handle. But, until then, traders may want to approach bullish pushes in USD/CAD as corrective in the longer-term picture of USD/CAD weakness.

USD/CAD DAILY PRICE CHART

USDCAD Daily Price Chart

Chart prepared by James Stanley; USDCAD on Tradingview

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