USD/CAD Long-Term Analysis: Bullish
USD/CAD is in a downward move after the formation of a bearish double top. The currency price broke below the 21-day line SMA but approaches the 50-day line SMA. The pair will be compelled to a range-bound move if it finds support above the 50-day line SMA. Meanwhile, on May 18 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the currency pair will fall to level 1.618 Fibonacci extension or level 1.2722. From the price action, USD/CAD has retested the Fibonacci extension. It is unclear if the support will hold.
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USD/CAD Indicator Analysis
USD/CAD has fallen to level 44 of the Relative Strength Index for period 14. The pair is trading now in the bearish trend zone and is capable of a further downward move. The currency price bars are above the 50-day line SMA but below the 21-day line SMA indicating a possible range bound move of the pair.USD/CAD is below the 20% range of the daily stochastic. The market has reached the oversold region.
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?
The pair is in a downtrend after the formation of a bearish double top. USD/CAD fell to the oversold region of the market. Meanwhile, on May 18 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the currency pair will fall to level 1.618 Fibonacci extension or level 1.2634.
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