USD/CAD Long-Term Analysis: Bearish
USD/CAD is in a downward correction but unable to sustain above 1.2650. The currency pair is above the 21-day SMA but below the 50-day line SMA. Since April 8, the pair has been in a range-bound move between the moving averages. The market will trend when the moving average lines are breached. Meanwhile, on April 13 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 2.0 Fibonacci extension or 1.2913.
USD/CAD Indicator Analysis
USD/CAD is at level 51 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The currency price is between the moving averages indicating that the pair has been in a range-bound move. USD/CAD is above the 50% range of the daily stochastic. The pair has reached bullish exhaustion. The 21-day line and the 50-day line moving averages are sloping horizontally indicating a sideways move.
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 but unable to sustain above 1.2650. Buyers are could not sustain the bullish momentum above the resistance at level 1.2650. The currency pair has fallen between the moving averages. A break above the 21-day line SMA will signal the resumption of the uptrend.
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