USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downtrend as it rebounds above level 1.2930. The currency price declined below the 21-day line SMA. In other words, the pair is trading above the 50-day line SMA but below the 21-day line SMA. On the downside, the selling pressure will continue if price breaks below the 50-day line SMA. Conversely, if the 50-day line SMA holds, it implies that the selling pressure has subsided. USD/CAD is likely to be compelled to a range-bound move between the moving average lines. Today, the pair has declined to the low of level 1.2974.
USD/CAD Indicator Analysis
USD/CAD is at level 47 of the Relative Strength Index for period 14. The pair is in the downtrend zone because of the recent selling pressure. The currency price is between the moving average lines which indicate a possible range-bound move of the pair. The 21-day line SMA and the 50-day SMA are sloping horizontally indicating a sideways move. USD/CAD is below the 20% range of the daily stochastic. The market has reached the oversold region. The current downtrend has reached bearish exhaustion.
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 downtrend as it rebounds above level 1.2930. Since September 9, the currency has been fluctuating above the current support. Meanwhile, on the September 9 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that USD/CAD will fall but reverse at level 1.272 Fibonacci extension or level 1.2930.
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