USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward correction as it faces rejection at 1.2950.Today, the pair is stuck between the moving average lines. The implication is that the range-bound move will continue. Today, currency pair is facing rejection at the 21-day line SMA. This will cause the market to decline to the previous low. USD/CAD will revisit the previous low at level 1.27674.
USD/CAD Indicator Analysis
USD/CAD is at level 50 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The 21-day line SMA and the 50-day line SMA are sloping horizontally indicating a sideways move. USD/CAD is below the 40% range of the daily stochastic. The pair is in a bearish 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?
On 4 hour chart, USD/CAD has been in a downward correction as it faces rejection at 1.2950. The pair have been fluctuates between the 21-day line SMA and the 50-day line SMA. Today, the bulls have broken above the 21-day line SMA but it is resisted at the recent high. Meanwhile, on the August 8 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that. The pair will rise to level 1.618 Fibonacci extension or 1.27718. From the price action, the pair has already fallen to the oversold region of the market but is resuming downward.
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