USD/CAD Long-Term Analysis: Bearish
USD/CAD retraced to the low of level 1.2432 after rejection from the recent high. The 1.2432 support was the previous resistance of June 21. The current retracement has reached bearish exhaustion. Meanwhile, on August 3 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 1.2722.
USD/CAD Indicator Analysis
USD/CAD is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. The price bars are below the moving averages which indicates upward movement is doubtful. USD/CAD is above the 25% range of the daily stochastic. It indicates that the currency pair is in a bullish momentum.
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?
The currency pair is likely to resume a downward move after falling to the low of level 1.2440. On the 4-hour hour chart, the upward correction is facing resistance at the high of level 1.2570. On the upside, if price breaks above level 1.2570 resistance, the uptrend will resume. Meanwhile, on August 3 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 1.2725.
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