USD/CAD Attempts Uptrend, Faces Resistance at Level 1.36663

USD/CAD Attempts Uptrend, Faces Resistance at Level 1.36663

Key Resistance Levels: 1.42000, 1.44000, 1.46000
Key Support Levels: 1.34000, 1.32000, 1.30000

USD/CAD Price Long-term Trend: Bearish
The USD/CAD pair is on a downtrend. The market reached a low of 1.34000 and made an upward correction. The pair is retracing after retesting the 1.36000 resistance. The Loonie was earlier in the oversold region. It is expected that buyers are likely to emerge.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downtrends indicating the bearish trend. The Loonie has risen to level 40 of the Relative Strength Index. This indicates that the pair is in the downtrend and also below the centerline 50.


USD/CAD Medium-term Trend: Bearish
The Loonie is in a downtrend. The pair corrected upward as the market reached a high of level 1.36663. Buyers retested the recent high twice before retracing to 1.35287 low. However, because of the correction candlestick, the market may move up. A correction candle body tested 0.786 retracement level. This indicates that the pair will rise and reverse at the 1.272 extension level.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the 21-day SMA and 50-day SMA are sloping downward indicating the downtrend. The Canadian dollar is above 25% range of the daily stochastic. This indicates that the pair is in a bullish momentum.

General Outlook for USD/CAD
The USD/CAD pair has been in a downtrend. The RSI has indicated that the pair has reached the oversold region. The price action is indicating a sideways movement of the Loonie. A Doji candlestick appeared at level 1.34000 indicating that the downtrend is over. We should expect the bulls to take control of price.


Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.