USD/CAD Is in a Sideways Move, May Resume Downtrend

USD/CAD Is in a Sideways Move, May Resume Downtrend


Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.1900, 1.1800, 1.1700

USD/CAD Price Long-term Trend: Bearish
USD/CAD is presently rising on the upside. Since May 10, the pair has been fluctuating between levels 1.2050 and 1.2200. Today the upward move is facing resistance at the 21-day SMA. On the upside, if price breaks above the moving averages, the uptrend will resume. The downtrend will resume if price breaks below level 1.2050..

USD/CAD -Daily Chart

Daily Chart Indicators Reading:
The moving averages are sloping downward indicating the downtrend. USD/CAD has risen to level 41 of the Relative Strength Index period 14. It indicates that the pair is in the downtrend zone below the centerline 50.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the USD/CAD is fluctuating. The market is fluctuating in a range between levels 1.2050 and 1.2200. Today, the price has broken above SMAs to reach 1.2160. The upward move is facing rejection at the recent high. The current price fluctuation has been ongoing for two weeks.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
USD/CAD is above the 80% range of the daily stochastic. It indicates that the pair has reached the overbought region of the market. Sellers will emerge to push prices down. The 21-day and 50-day SMAs are sloping horizontally indicating the sideways trend.

General Outlook for USD/CAD
USD/CAD pair has been in a sideways trend. The selling pressure will resume if price breaks below level 1.2050 support. Similarly, the uptrend will resume if price breaks above the SMAs and the bullish momentum is sustained.


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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.