USD/CAD Long-Term Analysis: Bullish
USD/CAD is a sideways trend as it battles level 1.3050 overhead resistance. Since May 12, the currency pair has been trading below the overhead resistance. On June 17 and July 5, the currency pair declined above the above moving average lines. The currency pair will continue the upward moves if price remains above the moving average lines. The downtrend will resume if price breaks below the moving average lines.
USD/CAD Indicator Analysis
USD/CAD is at level 54 of the Relative Strength Index for period 14. The currency pair is trading in the bullish trend zone and it may continue to rise. The 21-day line SMA and 50-day line SMA are sloping horizontally. USD/CAD is below the 20% range of the daily stochastic. The pair is in the oversold region of the market. Buyers will emerge in the oversold region to push the pair upward.
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 in a downward move as it battles level 1.3050 overhead resistance. The currency price is at a point of breaking below the moving average lines. This implies that the pair will further decline to the downside. Meanwhile, on July 7 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the pair will fall to level 2.0 Fibonacci extension or level 1.2831.
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