USD/CAD Long-Term Analysis: Ranging
USD/CAD has broken above the resistance at level 1.2400. The bullish momentum has also extended above the moving averages. This indicates that the currency pair has resumed its upward move and it is likely to rise to revisit the previous high of level 1.2800. The previous high has been the overhead resistance since July and it is yet to be broken. On the upside, if buyers breach the overhead resistance, the market will rally to level 1.3000. However, the sideways move will resume if the overhead resistance remains unbroken.
Technical indicators:
Major Resistance Levels – 1.3300, 1.3400, 1.3500
Major Support Levels – 1.2300, 1.2200, 1.2100
USD/CAD Indicator Analysis
USD/CAD has risen to level 65 of the Relative Strength Index period 14. The pair is in the bullish trend zone and it is approaching the overbought region. The price bars are above the 21-day SMA and the 50-day SMA indicating a possible upward movement of prices. The pair is above the 80% range of the daily stochastic. Sellers are likely to emerge in the overbought region.
What Is the Next Direction for USD/CAD?
On the 4 Hour Chart, the pair has broken the range-bound move and rallied to level 1.2596. After the minor resistance, the upward move is likely to resume. Meanwhile, on the November 11 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CAD will rise but reverse at level 1.272 Fibonacci extension or level 1.2652.
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