USD/CAD Long-Term Analysis: Bearish
USD/CAD faces rejection at the 1.2600 resistance level. Since March 23, the currency pair has been fluctuating below the resistance level, In April 24, the bears broke the 1.2600 resistance as the market resumed a downward move. The currency pair has reached the low of 1.2278 and further downsides are likely.
USD/CAD Indicator Analysis
The 21-day and 50-day SMAs are sloping downward indicating the downtrend. The pair has fallen to level 30 of the Relative Strength Index period 14. It indicates that the pair has reached the oversold region of the market. The market is also reaching bearish exhaustion.
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?
The currency pair has resumed a downward move as selling pressure persists. On the August 21 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. This retracement indicates that USD/CAD will fall to level 1.272 Fibonacci extension or the low of level 1.2406. From the price action, the pair broke the support level of 1.2400 and continued the downward move.
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