USD/CAD Is Facing Resistance At Level 1.2620, Downtrend Likely

USD/CAD Is Facing Resistance At Level 1.2620, 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 pair is in a bullish moventum for the past three days. The currency pair has been rising on the upside. Buyers have broken above the moving averages. However, the uptrend is facing resistance at level 1.2600. The implication is that the major bearish trend is likely to resume.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping downward indicating the downtrend. USD/CAD is at level 54 of the Relative Strength Index period 14. It indicates that the pair is in the uptrend zone and it is capable of rising.

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair is rising on the upside. The current uptrend is facing resistance at level 1.2620. On April 20 uptrend; a retraced candle body tested the 88.6% Fibonacci retracement level. The retracement indicates that USD/CAD will rise to level 1.1129 Fibonacci level or the high of 1.2638. From the price action, the market is fluctuating below the resistance level.

USD/CAD – 2 Hour Chart

4-hour Chart Indicators Reading
USD/CAD is above the 80% range of the daily stochastic. It indicates that the pair has risen to the overbought region of the market. Sellers are likely to emerge. Presently, the SMAs are sloping upward indicating the uptrend.

General Outlook for USD/CAD
USD/CAD pair has been in an upward move for the past three days. The currency pair is now facing resistance at level 1.2620. There is the tendency of price falling as it is in the overbought of the market. Presently, the market is falling after rejection from the recent high.


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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.