USD/CAD Long-Term Analysis: Bullish
USD/CAD is in an uptrend as it targets 1.3422 high. In the previous price action, buyers failed to breach the resistance at level 1.3000. However, the pair declined above the moving average lines and rebounded to break the resistance level. Meanwhile, on the August 22 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that USD/CAD will rise to level 2.0 Fibonacci extension or level 1.3374. From the price action, the currency pair has risen to level 1.3307 at the time of writing.
USD/CAD Indicator Analysis
USD/CAD is at level 77 of the Relative Strength Index for period 14. The pair is trading in the bullish trend zone as it approaches the overbought region of the market. The pair will continue to rise as long as the price bars are above the moving average lines. The 21-day line SMA and the 50-day SMA are sloping upward indicating an uptrend. USD/CAD is above the 80% range of the daily stochastic. The market has reached the overbought region. The pair has reached bullish 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?
On the 4-hour chart, the pair is in an uptrend as it targets 1.3422 high .Meanwhile, on the September 16 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that USD/CAD will rise to level 1.618 Fibonacci extension or level 1.3422. From the price action, the currency pair has risen to level 1.3307 at the time of writing.
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