USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward move. The earlier breakout above the 1.2400 resistance was false as price pullback. The downtrend is likely to resume on the downside. The selling pressure will be accelerated if price breaks below the moving averages. Meanwhile, on May 19 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates USD/CAD will reach level 2.618 Fibonacci extension or level 1.0998. The selling pressure will resume as the currency pair resumes downward move.
USD/CAD Indicator Analysis
USD/CAD is at level 56 of the Relative Strength Index period 14. It indicates that the pair is in an uptrend and above the centerline 50. The 21-day and 50-day SMAs are sloping downward. The pair is below the 80% range of the daily stochastic. It indicates that the market is in the bearish momentum.Further downsides is expected as price fail to break recent high.
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 has resumed a downward move after facing rejection at level 1.2500 resistance zones. Meanwhile, on June 23 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that USD/CAD will reach level 1.618 Fibonacci extension or level 1.21604.
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