USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward move but in a sideways trend as it may resume an uptrend. The currency pair has been declining from the high of level 1.2947 to the low of level 1.2520. The pair appears to have reached bearish exhaustion. Meanwhile, on January 3 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.272 Fibonacci extension or level 1.2535.
USD/CAD Indicator Analysis
USD/CAD is at level 39 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping in a sideways move indicating the range-bound move. When the price bars are above the moving averages the currency pair will resume up trending. USD/CAD is above the 80% range of the daily stochastic. The market has reached the overbought region. The pair may decline.
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 downward move as price reaches the low of 1.2480 but it may resume an uptrend. Meanwhile, on January 2 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.618 Fibonacci extension or level 1.2423.
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