USD/CAD Long-Term Analysis: Bearish
USD/CAD is still in a downtrend as bulls resumes uptrend. For the past four days, the currency pair has been correcting upward as it reached the high of 1.2619. The upward correction is facing rejection at the recent high. Meanwhile, on March 11 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that USD/CAD will fall to level 2.0 Fibonacci extension or 1.24855. From the price action, the currency pair has reversed but consolidated above the current support before resuming uptrend.
USD/CAD Indicator Analysis
The pair is at level 48 of the Relative Strength Index for period 14. It is in the downtrend zone and below the centerline 50. The pair is capable of falling to the downside. The 21-day line and the 50-day line moving averages are sloping southward indicating the downtrend. USD/CAD is above the 80% range of the daily stochastic. The pair has reached bullish exhaustion. Sellers will emerge in the overbought region.
Technical indicators:
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 an uptrend as bulls resumes uptrend. The uptrend was stalled at the high of level 1.2611. The pair is facing rejection at the recent high as the market reaches the overbought region. Today, the pair has resumed upward after breaking above the 21-day line SMA.
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