USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward move. The pair is retracing after rejection from level 1.2800. The current retracement is likely to reach the low of level 1.2500. Alternatively, USD/CAD will find support above the 21-day SMA. The pair has already fallen to the low of level 1.2556. The upward movement will resume as the market reaches bearish exhaustion. Meanwhile, on July 19 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates USD/CAD will rise to level 2.0 Fibonacci extension or level 1.3269.
USD/CAD Indicator Analysis
USD/CAD is at level 57 of the Relative Strength Index period 14. It indicates that the pair is in the uptrend zone and has room to rally on the upside.USD/CAD is above the 25% range of the daily stochastic. It indicates the currency pair is in a bullish momentum. The 21-day and 50-day SMAs are sloping upward. The pair is in a bullish crossover.
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?
USD/CAD is likely to further decline before upward resumption.
Meanwhile, on July 21 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates USD/CAD will fall but reverse at level 1.272 Fibonacci extension or level 1.2457.
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