USD/CAD Long-Term Analysis: Bearish
USD/CAD is now in an upward move after the rebound above 1.2288. The current downtrend has reached bearish exhaustion. The currency pair has earlier retraced and tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD will fall to level 1.618 Fibonacci extension or level 1.2286. With this decline, the selling pressure is presumed to be over. Buyers will have to push the pair above the moving averages to resume upside momentum.
USD/CAD Indicator Analysis
The Relative Strength Index period 14 has fallen to level 35. It indicates that the pair is in the downtrend zone and below the centerline 50. The RSI is likely to rise as the currency pair resumed its upward move. The 21-day and 50-day SMAs are sloping downward indicating the previous downtrend. USD/CAD is above the 50% range of the daily stochastic. It indicates that the market is in a bullish 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 the 4 Hour Chart, the pair is in an uptrend. The currency price has broken above the moving averages but faces rejection at the 50-day SMA. Meanwhile, on October 21 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 2.0 Fibonacci extension or level 1.2486.
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