USD/CAD Long-Term Analysis: Ranging
USD/CAD is in a sideways trend as it revisits level 1.3060. The currency pair has been range bound between 1.2800 and 1.3000 price levels. Each time the pair rises above level 1.3000, the market would decline. Buyers could not sustain the bullish momentum as the market reaches the overbought region. Today, the pair has risen to the high of level 1.3043. On August 22 upward move, the pair reached the high of level, 1, 3061 but was repelled.
USD/CAD Indicator Analysis
USD/CAD is at level 57 of the Relative Strength Index for period 14. The pair is in the uptrend zone and may father rise. The 21-day line SMA and the 50-day SMA are sloping horizontally indicating a sideways move. USD/CAD is above the 80% range of the daily stochastic. The market has reached the overbought region. The currency pair is likely to fall to the lower price range as the sideways move resumes.
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?
USD/CAD is in a sideways move as it revisits level 1.3060. The trend will change when the range-bound levels are breached. On the 4-hour chart, the trend will further rise. Meanwhile, on the August 15 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 1.3021.
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