USD/CAD Long-Term Analysis: Bullish
USD/CAD pair is in an uptrend. The currency pair has broken above the moving averages to retest level 1.2800 overhead resistance. The current uptrend has reached the overbought region of the market. The implication is that a further upward move is unlikely. Besides, the 1.2800 overhead resistance has not been broken since July. The currency pair has been in a sideways move for the past five months. Each time the overhead resistance is retested, the pair would decline to the low of level 1.2500. Today, the USD/CAD price is retesting the 1.2800 overhead resistance.
USD/CAD Indicator Analysis
The currency pair is at level 70 of the Relative Strength Index for period 14. The market has reached the overbought region. Sellers are likely to emerge to push prices down. The currency price bars are above the moving averages which indicate a possible rise of the pair. USD/CAD has a bullish crossover. That is, the 21-day SMA crosses above the 50-day SMA indicating a buy signal. USD/CAD is above the 80% range of the daily stochastic. Also, it indicates that the market has reached an overbought region.
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 smooth uptrend. The currency price is making a series of higher highs and higher lows. Today, the pair is trading at level 1.2828 at the time of writing. The current uptrend is likely to reach bullish exhaustion as the market reaches the overbought region.
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