USD/CAD Long-Term Analysis: Bearish
USD/CAD has fallen to level 1.2585 as the currency pair resumes a downward move. The pair has broken below the 21-day SMA and it is approaching the 50-day SMA. The current downtrend was necessitated as bulls fail to sustain above level 1.2800. Since July 20, buyers have been repelled twice while attempting to break above the overhead resistance. The currency pair may resume a downtrend if the 50-day SMA is breached.
USD/CAD Indicator Analysis
USD/CAD is at level 55 of the Relative Strength Index period 14. It indicates that the pair is in the uptrend zone and above the centerline 50. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. USD/CAD is above the 25% range of the daily stochastic. The market is in a bullish momentum. USD/CAD has resumed bullish momentum above level 1.2580.
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 has resumed upward move as the pair had been oversold for some time. According to the Fibonacci tool, the market will decline to level 1.2558 before any trend reversal. However, from the price action, USD/CAD has reversed at level 1.2580. On the 4 hour chart, on September 9 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD will fall to level 1.618 Fibonacci extension or level 1.2558.
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