USD/CAD Is in a Sideways Trend as Price Makes Deeper Correction

USD/CAD Long-Term Analysis: Ranging
USD/CAD is in a sideways trend as price makes deeper correction . The currency price has fallen below the moving averages and resumed consolidation. The currency pair fell to the low of level 1.2460 and resumed fluctuation above the current support. The current support is the historical price level of August 12. On August 12, USD/CAD rebounded above the current support and rallied to the previous highs. The pair broke the overhead resistance and reached a high of 1.2900. Suddenly, the currency pair dropped sharply as it reached the overbought region of the market. Since August 2021, the overhead resistance has not been broken convincingly.

USD/CAD Indicator Analysis
The currency price is below the moving averages indicating a possible fall.USD/CAD is at level 40 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50. USD/CAD is capable of falling to the downside. The pair is above the 68% range of the daily stochastic. The market is in a bullish momentum. The 21-day SMA and the 50-day SMA are sloping southward indicating a downtrend.

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 a sideways move since January 13 as price makes deeper correction . For the past week, the currency has been fluctuating between 1.2460 and 1.2570 price levels. The uptrend will resume if price breaks above level 1.2570. The pair will revisit the previous low at level 1.2320.

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