USD/CAD in an Upward Move, a Retest at 1.46674 Resistance Likely


Key Resistance Zones: 1.44000, 1.46000, 1.48000
Key Support Zones: 1.34000, 1.32000, 1.30000

USD/CAD Long-term Trend: Bearish
The pair was in a sideways move in the month of February. However, the pair gapped up in the March and resumed an upward move. Price reached level 1.46674 and become overbought. The market resumed a downward move. A bull candle body tested the 0.786 Fibonacci retracement level which indicates that the downtrend may elapse at the 1.272 extension level.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The market is currently at level 54 of the Relative Strength index. This indicates that the USD/CAD pair is in the uptrend zone and above the centerline 50. An upward movement is expected.

USD/CAD Medium-term Trend: Bearish
On the 4- hour chart, the pair is falling. All through the month of March, the USD/CAD pair was in a bull market. At level 1.46674, the market reached the overbought region. As a result of the overbought region, sellers emerged to push prices downward.

A Fibonacci tool was used to determine the extent of the downward move. According to the Fibonacci tool, the market will reverse at 1.618 extension. The downtrend will resume to 2.618 extension if the first level is broken. From the chart, the 1.618 level has been achieved but the upward move is facing  some resistance.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
The pair is currently above 75% range of the daily stochastic. This indicates that the market is in a bullish momentum. It is currently approaching the overbought region.

General Outlook for USD/CAD
The pair is likely to continue the upward move to retest level 1.46000. This was the level the bull market was earlier reversed in March.

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Azeez Mustapha

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.