USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downtrend as buyers recoup to resume uptrend. The currency pair has faced two rejections as it resumed downward. On December 20, there was a false breakout above level 1.2850 overhead resistance. The pair reached a high of 1.2950 and plunged below the overhead resistance. USD/CAD reached the low of 1.2650 and corrected upward. The upward correction was repelled at level 1.2800. Today, the market is declining to the downside. The pair is likely to revisit the previous low at level 1.2650. When this level is breached, the downtrend will resume.
USD/CAD Indicator Analysis
USD/CAD is at level 47 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50. The price bars are below the moving averages indicating that the market will decline to the downside. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The currency pair is below the 20% range of the daily stochastic. It has reached the oversold region of the market.
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?
The pair has fallen to level 1.2711 as buyers recoup to resume uptrend . USD/CAD has reached the oversold region of the market. There are bullish candlesticks as price reaches the oversold region of the market. Buyers are likely to emerge to push prices upward. The pair is hovering above level 1.2700 support.
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