USD/CAD Long-Term Analysis: Bearish
USD/CAD has been in a downtrend as bears target level 1.2364. The selling pressure may subside as the market reaches the previous low at level 1.2450. Besides, the pair is approaching the oversold region of the market. However, the market may further decline if price breaks below the previous low at level 1.2450. Meanwhile, on March 11 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the currency pair will fall to level 2.618 Fibonacci extension or level 1.2364.
USD/CAD Indicator Analysis
The market has fallen to level 37 of the Relative Strength Index for period 14. The pair is likely to further decline to the oversold region at level 30 of the RSI. The price bars are below the moving averages indicating a further downward move. Presently, USD/CAD is above the 25% range of the daily stochastic. However, the pair may fall below the 20% range of the daily stochastic as the bearish momentum resumes.
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 downtrend as bears target level 1.2364. Today,the pair has fallen to level 1.2530. On March 24, USD/CAD declined to the low of level 1.2509 and resumed consolidation above the current support. The market will further decline if the bears break below level 1.2500 support.
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