USD/CAD Long-Term Analysis: Bullish
USD/CAD is in an upward move as it reaches an overbought region at 1.2720. The currency pair has not closed properly above the moving averages. It is likely to face another resistance at level 1.2800. Meanwhile, on January 28 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 1.618 Fibonacci extension or level 1.3012.
USD/CAD Indicator Analysis
USD/CAD is in an upward move as the index reaches level 56 of the Relative Strength Index period 14. The index price is likely to rise as it is above the moving averages. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. The pair is above the 75% range of the daily stochastic. The currency pair is approaching the overbought region of the market. The current uptrend may be short-lived.
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 is in an uptrend as it reaches an overbought region at 1.2720. The currency pair has risen to level 1.2730 at the time of writing. The pair is likely to face resistance at a high of 1.2800. In the previous uptrend of January 27, USD/CAD was repelled as it declined to the low of level 1.2650.
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