CAD  – USD/CAD Forms Double Top Pattern

The USD/CAD pair is showing a technical chart pattern with the RSI and Stochastic Oscillator both declining. The pair encountered resistance again near the 1.41 level at the beginning of the week, a level it had previously been constrained by earlier this month. Wednesday saw a pullback from this area, forming the initial stages of a double top pattern. The neckline is referenced to the November 18 low of 1.3969, which is a key supporting level. A break below this level would likely lead to further declines. Next targets are 1.3920 and 1.3860, with the next level expected to be 1.38. Resistance levels are anticipated at 1.4140 and 1.42, with the next level expected to be the April 1 high of 1.4415 and even 1.45. The forecasted supporting level is about 1.40.

Forecasted range:
Resistance: 1.4140 – 1.4200 – 1.4415 – 1.4500
Support: 1.3969* - 1.3920 - 1.3860 – 1.3800

Key focus:
Friday: Canada's Q3 GDP (21:30)

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