USD/CAD Long-Term Analysis: Ranging
USD/CAD pair has been in a sideways trend as it declines after a false breakout. Buyers have failed to breach the overhead resistance at level 1.2850. Since July, the bulls have attempted to breach the resistance level. In the three unsuccessful attempts, the currency pair was repelled as it fell below and above the moving averages. In the uptrend of December 2, the bulls breach the overhead resistance but the bullish momentum could not be sustained. Meanwhile, on December 2 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the currency pair will rise to level 1.618 Fibonacci extension or 1.3172. The Fibonacci tool analysis will hold if the overhead resistance is breached.
Major Resistance Levels – 1.3300, 1.3400, 1.3500
Major Support Levels – 1.2300, 1.2200, 1.2100
USD/CAD Indicator Analysis
The pair has a bullish crossover. That is, the 21-day line moving average crosses above the 50-day line moving average indicating a buy order. USD/CAD 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 21-day SMA and 50-day SMA are sloping upward indicating the uptrend. USD/CAD is below the 80% range of the daily stochastic. The market is in a bearish momentum
What Is the Next Direction for USD/CAD?
On the Daily Chart, USD/CAD is a sideways move as it declines after a false breakout . The currency price is above the moving averages. It indicates a possible rise of the currency pair to retest the overhead resistance. The market will resume up trending when the overhead resistance is breached. Otherwise, the current sideways trend may continue.
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