USD/CAD Long-Term Analysis: Bearish
USD/CAD uptrend is facing rejection at level 1.2600. The pair is declining and may find support above the 21-day SMA. The upward move will resume if price breaks above the 1.2600 resistance. Meanwhile, on June 21 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates USD/CAD will rise to level 1.618 Fibonacci extension or level 1.2763. The currency pair is yet to reach the targeted price because of the resistance at level 1.2600.
USD/CAD Indicator Analysis
The currency pair is at level 58 of the Relative Strength Index period 14. It indicates that the pair is in an uptrend and above the centerline 50. USD/CAD is below the 20% range of the daily stochastic. It indicates the market has reached the oversold region. The selling pressure is likely to subside. Buyers are expected to emerge in the oversold region. The 21-day and 50-day SMAs are sloping downward.
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?
USD/CAD is in a downward move. The currency pair has fallen to the support of the 50-day SMA. The upward movement will resume if the 50-day SMA support holds. Meanwhile, on June 18 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that USD/CAD will reach level 1.618 Fibonacci extension or level 1.2472. From the price action, the price has fallen beyond the Fibonacci level. It is presently testing the 50-day SMA.
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