USD/CAD Long-Term Analysis: Bearish
USD/CAD is now in a downward move as price breaks below the moving averages. The breaking of the moving averages signals the resumption of a downtrend. Meanwhile, on August 25 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CAD will rise but will reverse at level 1.272 Fibonacci extension or level 1.2457.
USD/CAD Indicator Analysis
USD/CAD has fallen to level 44 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 upward indicating the uptrend. USD/CAD is below the 20% range of the daily stochastic. The market has reached the oversold region. Buyers are likely to emerge to push prices upward.
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 has fallen to the oversold region of the market. The market is consolidating above level 1.2430. The selling pressure has reached bearish exhaustion as the market reaches oversold region. If buyers emerge, the pair is likely to resume correction upward. If the pair rises above the moving averages and the bullish momentum is sustained, the downtrend is likely to be terminated.
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