USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward move. The downtrend resumes after a rejection from level 1.2650. The currency pair plunged sharply to the low of level 1.2000 and corrected upward. The pair corrected upward to level 1.2200 and resumed fluctuation between 1.2000 and 1.2200. Since May 10, the pair has been confined in a range. The selling pressure will resume if price breaks below level 1.2000. Presently, the price action is characterized by small body candlesticks.
USD/CAD Indicator Analysis
USD/CAD has risen to level 32 of the Relative Strength Index period 14. It indicates that the pair is still in the oversold region of the market. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.The currency pair is above 25% range of the daily stochastic. It indicates that the pair is in a bullish 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?
USD/CAD is still falling as a result of the rejection at level 1.2650. On May 18, the pair corrected upward but was resisted at level 1.2140. USD/CAD fell after testing the recent high twice. Meanwhile, on May 20 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CAD is likely to fall to level 1.272 Fibonacci extension and reverse. That is the low of level 1.2021.
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