USD/CAD Long-Term Analysis: Ranging
USD/CAD pair has fallen above the moving averages after retesting the overhead resistance at level 1.2850. When the currency price falls above the moving averages, buyers will recoup to resume upward. At other times, the currency pair will plunge to 1.2340 low after a strong rejection at the overhead resistance. Today, the market is rising to retest the overhead resistance.
USD/CAD Indicator Analysis
USD/CAD is at level 58 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 20% range of the daily stochastic. The pair has fallen to the oversold region of the market. Buyers are likely to emerge in the oversold region of the market.
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 an uptrend. Buyers have not been able to breach the overhead resistance at level 1.2850. In the second uptrend, buyers kept the price above the overhead resistance but were repelled at level 1.2900. Meanwhile, on December 15 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 level 1.3259.
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