USD/CAD Long-Term Analysis: Bullish
USD/CAD is in a downward correction but stuck at Level 1.2722. The currency pair is stuck in between the moving averages. The currency price is above the 50-day line moving average but below the 21-day line moving average. USD/CAD will be compelled to a range-bound move if price is stuck between the moving averages. However, if price breaks above the 21-day line moving average, the pair will resume an uptrend. On the other hand, if price breaks below the 50- day line moving average, the downtrend will resume. USD/CAD is trading at level 1.2693 at the time of writing.
USD/CAD Indicator Analysis
USD/CAD is at level 49 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. The pair is above the 50% range of the daily stochastic. The market is in bullish momentum.
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 a sideways trend but stuck at Level 1.2722. The pair is recovering from a recent downtrend. Meanwhile, on February 28 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the currency pair will fall to level 1.618 Fibonacci extension or level 1.2544. From the price action, USD/CAD has reversed at level 1.2586.
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