USD/CAD Long-Term Analysis: Bullish
USD/CAD is trading in a sideways move as buyers and sellers reach indecision. The currency price has broken above the moving averages but the pair fluctuates between the moving averages. The market will trend when the moving average lines are breached. Meanwhile, on January 28 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 1.2992. The uptrend will resume when the resistance at level 1.2800 is breached.
USD/CAD Indicator Analysis
The currency pair is at level 52 of the Relative Strength Index period 14. The market is still in the uptrend zone and capable of a further upward move. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. The pair is below the 80% range of the daily stochastic. The market is in a bearish momentum.
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, USD/CAD is in a range-bound move as buyers and sellers reach indecision.On January 28, the bulls failed to break the resistance at level 1.2800. The pair was resisted as it fell to 1.2650 low. Since January 28, the market has been fluctuating between 1.2650 and 1.2800 price levels. The uptrend will resume when price breaks above the resistance at 1.2800. Similarly, the downtrend will resume if the price breaks below level 1.2650.
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