USD/CAD Long-Term Analysis: Bearish
In July, USD/CAD has been in an upward move. Previously, the pair has been in a downtrend for several weeks. The upward move is facing rejection at level 1.2500. The downtrend will resume if the pair faces rejection at the recent high. Meanwhile, on June 21 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 1.618 Fibonacci extension or level 1.2744.
USD/CAD Indicator Analysis
The currency pair is at level 55 of the Relative Strength Index period 14. It indicates that the pair is in an uptrend and above the centerline 50. USD/CAD is above the 40% range of the daily stochastic. It indicates that the market is in bullish momentum. The 21-day and 50-day SMAs are sloping downward.
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 is attempting to break above level 1.2500 resistance zones. A break above level 1.2500 will propel the currency pair to resume upside momentum. Meanwhile, on June 18 uptrend; 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 1.2768. From the price action, the market is approaching level 1.2500 to retest it.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Leave a Reply