USD/CAD Long-Term Analysis: Bullish
USD/CAD is in an upward move. The uptrend is facing rejection at the high of level 1.2800. Each time the pair is rejected, the market would fall above level 1.2500. The current rejection is on August 20 where there was the formation of a bearish pin bar called a Shooting Star. On that date, buyers attempted to push the market higher but were repelled by strong selling pressure. The appearance of a shooting star marked the end of the uptrend. It also marks the beginning of downtrend. From the price action, the market declined to the 21-day SMA support. Bullish candlesticks are indicating further rise of of the currency pair.
USD/CAD Indicator Analysis
USD/CAD has fallen to level 57 of the Relative Strength Index period 14. It indicates that the pair is in the bullish trend zone and above the centerline 50. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. USD/CAD is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers are likely to emerge to push prices down.
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. The uptrend is facing rejection at the recent high. Meanwhile, on the August 27 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 1.272 Fibonacci extension and reverse.
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