USD/CAD Long-Term Analysis: Bullish
USD/CAD has been consolidating above the moving averages but faces rejection at level 1.2800 . The upward move has been hampered at level 1.2900. In the previous price action, on December 20, 2021, the pair was repelled at the resistance of level 1.2900. The pair declined to the low of 1.2495. The upward move will resume if the resistance level is breached. On January 28 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair will rise to level 1.618 Fibonacci extension or level 1.30042.
USD/CAD Indicator Analysis
USD/CAD is at level 60 of the Relative Strength Index period 14. The pair is in the uptrend zone and capable of a further upward move. However, the uptrend has been hampered at level 1.2900. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. The pair is below the 50% range of the daily stochastic. The market is in bearish momentum.
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, USD/CAD is in a range-bound move but faces rejection at level 1.2800 . The pair is fluctuating between levels 1.2650 and 1.2800. On February 24, buyers pushed the pair above the resistance level but could not sustain the bullish momentum. USD/CAD has resumed a sideways move.
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