USD/CAD Long-Term Analysis: Bearish
USD/CAD is in an upward move. The currency pair is facing resistance at the 1.2600 high. On July 8, USD/CAD was repelled as price fell to level 1.2441 low. The pair resumes upward retesting the resistance at level 1.2600. The upward move is doubtful as price reaches the overbought region of the market. Meanwhile, on June 21 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates USD/CAD will rise to level 1.618 Fibonacci extension or level 1.2766.
USD/CAD Indicator Analysis
USD/CAD is at level 69 of the Relative Strength Index period 14. It indicates that the pair has reached the overbought region of the market. The market is likely to fall as sellers will emerge in the overbought region.USD/CAD is above the 80% range of the daily stochastic. It indicates the market has reached the overbought region. The 21-day and 50-day SMAs are sloping upward.
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 in an upward move but it is currently facing resistance at the recent high. The currency price is attempting to break the resistance at level 1.2600. The pair will fall if it faces rejection. Meanwhile, on June 13 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that USD/CAD will reach level 1.618 Fibonacci extension or level 1.25980. From the price action, the pair is retesting the 1.618 Fibonacci extension.
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