USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downtrend. Since the last bearish impulse on March 17, the pair has been making a brief uptrend in April. The uptrend has been facing rejection at the high of level 1.2650. On three occasions the uptrend has been rejected. There is the tendency of a downward movement of prices. Today, the selling pressure has resumed on the downsides.
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USD/CAD Indicator Analysis
The 21-day and 50-day SMAs are sloping downward indicating the downtrend. The pair is at level 42 of the Relative Strength Index period 14. It indicates that the pair is in the downtrend zone and below the centerline 50.
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?
The currency pair is likely to resume a downward move as it faces rejection thrice at level 1.2650 high. On April 21 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This retracement indicates that USD/CAD will fall to level 1.272 Fibonacci extension or the low of level 1.2406.
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