USD/CAD Long-Term Analysis: Ranging
USD/CAD pair has been in a sideways trend since July 19. For over four months, buyers are yet to breach the overhead resistance at level 1.2800. The currency pair would decline above the moving averages, each time the overhead resistance is retested. On December 3, the bulls retested the resistance at 1.2800. USD/CAD fell to level 1.2600 low as bulls bought the dips. The pair is resuming a fresh uptrend to retest the overhead resistance. The 1.2800 price level is an overbought region of the market.
USD/CAD Indicator Analysis
The currency pair is at level 55 of the Relative Strength Index for period 14. It indicates that the pair is in the uptrend zone and capable of a further upward move. The currency price bars are above the moving averages which indicate a possible rise of the pair. USD/CAD is above the 80% range of the daily stochastic. The currency pair has reached an overbought region and there is a possibility of downward movement of prices.
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 recovering after the recent downtrend. The pair rebounded above level 1.2620 to resume an upward move. The current uptrend has reached an overbought region of the market. The pair is likely to face rejection at the recent high.
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