USD/CAD Long-Term Analysis: Ranging
In January, USD/CAD was in a brief uptrend but unable to break recent high. On January 28, the uptrend was terminated as the currency pair was compelled to a sideways move. Presently, USD/CAD is fluctuating between 1.2650 and 1.2800 price levels. For the past three weeks, the pair has been fluctuating in a narrow range between the price range. On the upside, if the bulls break the resistance at level 1.2800, the market will revisit the high of level 1.3000. On the downside, if the bears break below level 1.2650, the market will decline to level 1.2450.
USD/CAD Indicator Analysis
USD/CAD is at level 52 of the Relative Strength Index period 14. The market is still in the uptrend zone and capable of a further upward move. 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 a bullish momentum but the momentum is unstable.
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 range-bound move but unable to break recent high. For the past three weeks, the currency pair has been confined between 1.2650 and 1.2800 price levels. The currency pair will trend when the range-bound levels are breached.
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