USD/CAD Long-Term Analysis: Bearish
Since September 22, USD/CAD has been in a downward move. Firstly, the currency pair dropped to the low of 1.2600 and corrected upward. The upward correction was terminated at the 1.2800 resistance zone. The selling pressure resumes but has reached bearish exhaustion. Meanwhile, on September 28 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD will fall to level 1.618 Fibonacci extension or level 1.2400. From the price action, the market has reached the low of level 1.2400.
USD/CAD Indicator Analysis
The pair is at level 31 of the Relative Strength Index period 14. It indicates that the pair is in the downtrend zone and below the centerline 50. The 21-day and 50-day SMAs are sloping horizontally indicating the previous sideways trend. USD/CAD is below the 20% range of the daily stochastic.USD/CAD has fallen to the oversold region of the market. The implication is that the selling pressure has reached bearish exhaustion.
Technical indicators:
Major Resistance Levels – 1.3300, 1.3400, 1.3500
Major Support Levels – 1.2300, 1.2200, 1.2100
What Is the Next Direction for USD/CAD?
On the 4 Hour Chart, the pair is in a smooth downtrend. The pair faced rejection at level 1.2750 and it continued the downward move. Meanwhile, on September 28 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that USD/CAD will fall at level 2.0 Fibonacci extension or level 1.2304.
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