USD/CAD Long-Term Analysis: Bullish
USD/CAD is retracing from the 1.2900 resistance zone but may find support above level 1.2702. The pair will retrace to the low of level 1.2676 or above the moving averages. It will resume a fresh uptrend if price retraces and finds support above the moving averages. However, if price breaks below the moving averages, the selling pressure will continue. The market will further decline to the low of level 1.2472.
USD/CAD Indicator Analysis
USD/CAD is at level 58 of the Relative Strength Index for period 14. The pair is still in the uptrend zone and it is capable of further upward move. The 21-day line and the 50-day line moving averages are sloping horizontally indicating a sideways move. The pair has been in a sideways trend since December 2021. USD/CAD is below the 20% range of the daily stochastic. It implies that the market has reached the oversold region of the market. The current downtrend will reach bearish exhaustion.
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 resumed its downtrend but may find support above level 1.2702. According to the Fibonacci tool analysis, the currency pair will retraced to the 78.6% Fibonacci retracement level or level 1.2702 . Also, tt may find support above the 50-day line SMA.
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