USD/CAD Long-Term Analysis: Ranging
USD/CAD has resumed an upward move after breaking above the 21-day SMA. The pair was in consolidation above level 1.2300 for two weeks before the recent breakout. The currency pair will resume upward if buyers push the pair above level 1.2600. However, the current uptrend may face resistance at the 50-day SMA. Nevertheless, if the bulls break above the 50-day SMA, the upward price movement will be accelerated.
USD/CAD Indicator Analysis
USD/CAD is at level 52 of the Relative Strength Index period 14. The pair has risen to the bullish trend zone and it is above the centerline 50. The pair is capable of making an upward move. The 21-day SMA and the 50-day SMA are sloping downward indicating the previous trend. The pair is above the 80% range of the daily stochastic. It is likely to decline in the overbought 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, the pair has resumed an upward move as price broke above level 1.2420. The uptrend is facing rejection at level 1.2480. Meanwhile, on the November 4 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that USD/CAD will rise but reverse at level 1.272 Fibonacci extension or level 1.24956.
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