USD/CAD in an Oversold Region as Buyers Emerge

USD/CAD in an Oversold Region as Buyers Emerge

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

USD/CAD Price Long-term Trend: Ranging
The Loonie was earlier in a bear market. The downward move seems to have exhausted as the market reached level 1.35620. The price is testing the previous support of March. In the previous support, the market went up. However, today if the price breaks below the support line and closes below it, there is the tendency of a further downward move.

USD/CAD – Daily Chart
 

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downwards indicating the previous bearish trend. The Loonie has fallen to level 30 of the Relative Strength Index. This indicates that the pair is in the downtrend and also above the centerline 50.


USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downtrend. A correction candle body tested 0.382 Fibonacci retracement level. The 0.382 Fibonacci retracement levels indicate that the Kiwi will have two take profits at 1.618 and 2.618 before reversal. This has been confirmed by the stochastic in the oversold region as buyers emerge.

USD/CAD – 4 Hour Chart



4-hour Chart Indicators Reading
Presently, the 21-day SMA and 50-day SMA are slowing downward indicating the downtrend. The Canadian dollar is below 20% range of the daily stochastic. It implies that the market is in the oversold region. This indicates that buyers are likely to emerge.

General Outlook for USD/CAD
The USD/CAD pair is in a bear market but the bearish market has been exhausted, buyers are likely to emerge. The price action has indicated the appearance of buyers in the oversold region.



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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.