USD/CAD Long-Term Analysis: Bullish
USD/CAD is in a sideways move as it faces rejection at level 1.2900. Since December 2021, the currency pair has been in a sideways move below the 1.2900 overhead resistances. Buyers have failed to keep the price above the overhead resistance. Each time the overhead resistance is retested, the market would fall above the moving averages. Meanwhile, on April 13 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the currency pair will fall to level 2.0 Fibonacci extension or level 1.2896.
USD/CAD Indicator Analysis
The currency pair is at level 62 of the Relative Strength Index for period 14. Despite the retracement, the pair is in the uptrend zone and it is capable of further upward move. The price bars are above the moving averages indicating a further rise of the currency pair. USD/CAD is above the 80% range of the daily stochastic. It implies that the market has reached the overbought region of the market. The pair is likely to decline from the overbought region.
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 move as it faces rejection at level 1.2900. The pair has been making positive moves which have faced rejection at the recent high. Today, the pair is rising to retest the overhead resistance.
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