USD/Cad Falls After Retesting Level 1.2350, Downtrend Likely

USD/Cad Falls After Retesting Level 1.2350, Downtrend Likely

Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.3400, 1.3200, 1.3000

USD/CAD Price Long-term Trend: Bearish
USD/CAD has continued its downward move as the market dropped to 1.2280 and resumed consolidation above the current support. Meanwhile, on March 19 downtrend, a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the market will fall to level 2.618 Fibonacci retracement level or the low of 1.1686.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The moving averages are sloping downward indicating the downtrend. USD/CAD is at level 32 of the Relative Strength Index period 14. It indicates that the pair is approaching the oversold region of the market. The pair will continue to fall as long as price is below the SMAs.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair fell to level 1.2200 support and resumed a range-bound move between 1.2200 and 1.2350. Today the pair is falling after retesting level 1.2350. On April 30 downtrend, a retraced candle body tested the 78.6 % Fibonacci retracement level. It indicates that the market will fall to 1.272 Fibonacci extension and reverse. That is the low of level 1.2222.

USD/CAD – Daily Chart

4-hour Chart Indicators Reading
USD/CAD is below the 25% range of the daily stochastic. It indicates that the pair is approaching the oversold region. Buyers are expected to emerge in the oversold region of the market. Presently, the SMAs are sloping downward indicating the downtrend.

General Outlook for USD/CAD
USD/CAD pair fell to the support above level 1.2200 and resumed a brief uptrend. The uptrend was rejected at level 1.2350. The market has resumed selling pressure as a result of the rejection. The pair is likely to fall.


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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.