USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward correction as it faces rejection at 1.2539. The selling pressure subsided after the decline on March 30. The 1.2429 is the historical price level of January 20, 2022. On January 20, the currency pair rebounded above the current support as it rallied to the high of 1.2800. After the rally, buyers could not sustain the bullish momentum above the recent high. On March 7, the bulls breach the resistance to reach the high of 1.2900. Today, buyers have recouped as the pair reached the high of 1.2527.
USD/CAD Indicator Analysis
The market has fallen to level 41 of the Relative Strength Index for period 14. USD/CAD is in the downtrend zone and below the centerline 50. The 21-day line and the 50-day line moving averages are sloping horizontally. USD/CAD is above the 80% range of the daily stochastic. The pair has reached the overbought region of the market. The current uptrend may face rejection at the recent high.
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?
On the 4-hour chart, USD/CAD is in a downward correction as it faces rejection at 1.2539. Buyers are making frantic efforts to push the BTC price upward. A fresh downtrend will resume if the pair faces rejection at the moving averages. The pair is falling as it reaches the low of 1.2519.
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