USD/CAD Long-Term Analysis: Bullish
USD/CAD has resumed an uptrend but it is trading between the moving averages as it struggles below 1.2900. The price was fluctuating above the moving averages before breaking below the 21-day line SMA. The currency pair will be compelled to a range-bound move if price falls between the moving averages. USD/CAD is trading below the 21-day line SMA but above the 50-day line SMA. Meanwhile, on May 7 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the currency pair will rise to level 1.618 Fibonacci extension or 1.3179.
USD/CAD Indicator Analysis
USD/CAD is at level 51 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The pair is likely to be in a range-bound move as it is between the moving averages. If it is above the moving averages, there is a tendency for the currency to rise to the previous highs. USD/CAD is below the 50% range of the daily stochastic. The market is in a bearish momentum but it is unstable The 21-day line and the 50-day line moving averages are sloping upward indicating an uptrend.
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 downward move but struggles below 1.2900. The bears have broken below the moving averages to reach the low of level 1.2836. In the lower time frame, the market has reached bearish exhaustion as the pair struggled to break the recent high. Since May 17, USD/CAD has been consolidating above level 1.2800 support.
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