USD/CAD Long-Term Analysis: Ranging
USD/CAD has been consolidating above level 1.2000 since May 10. The price action is characterized by small body indecisive candlesticks called Doji and Spinning tops. The small body candlesticks are indicating that buyers and sellers are undecided about the direction of the market. For the past weeks, the pair has been fluctuating between levels 1.2050 and 1.2200. The currency pair will trend if these range-bound levels are breached.
USD/CAD Indicator Analysis
USD/CAD is at level 37 of the Relative Strength Index period 14. It indicates that the pair is in the downtrend zone and below the centerline 50. The 21-day and 50-day SMAs are sloping downward indicating the downtrend. The 21-day SMA is acting as resistance to the currency pair.
Technical indicators:
Major Resistance Levels – 1.3300, 1.3400, 1.3500
Major Support Levels – 1.2200, 1.2100, 1.2000
What Is the Next Direction for USD/CAD?
USD/CAD is in a range-bound move. In the lower time frame, the currency pair is fluctuating between levels 1.2050 and 1.2150. Since May 10, the currency pair has been fluctuating within a confined range. A range-bound trader can trade the currency pair if the sideways trend persists. At a lower price, a trader can initiate a long trade. This buy order should be exited close to the resistance zone at 1.2150. Similarly, a short trade can be initiated at the resistance zone, if the currency pair is repelled. The sell order can be exited near the support at level 1.2050.
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