USD/CAD Long-Term Analysis: Bullish
USD/CAD is in an upward correction as it approaches resistance at 1.3000. The currency pair has risen to the high of 1.2913 at the time of writing. The uptrend may continue if the price finds support above the moving average lines. Meanwhile, on July 28 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.618 Fibonacci extension or 1.2546. From the price action, the pair has recovered as it broke and closed above the moving average lines.
USD/CAD Indicator Analysis
USD/CAD is at level 53 of the Relative Strength Index for period 14. It indicates that the pair is in the uptrend zone and may rise. The 21-day line SMA and the 50-day line SMA are sloping horizontally indicating a sideways move. USD/CAD is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers will emerge in the overbought region of the market.
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 been in a downward correction as it approaches resistance at 1.3000. The upward correction has reached the overbought region. The pair is likely to decline as sellers emerge in the overbought region of the market. The uptrend is approaching the previous high of level 1.29850.
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