USD/CAD Is in a Sideways Trend, Initiates an Uptrend

USD/CAD Is in a Sideways Trend, Initiates an Uptrend

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

USD/CAD Price Long-term Trend: Bullish
On January 21, the Loonie rebounded above level 1.2620 to resume an upward move. The uptrend continued today after the bulls break the resistance at 1.2689. The pair has risen to level 1.2762 at the time of writing.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day and the 21-day SMAs are sloping downward indicating the downtrend. The Loonie has risen to level 51 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand.

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. On January 25 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The pair will rise to level 1.618 Fibonacci extension. That is the high of 1.2896.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping northward indicating the uptrend. The Loonie is above the 40% range of the daily stochastic. It is in a bullish momentum. The pair is out of the oversold region of the market. Buyers are likely to emerge.

General Outlook for USD/CAD
The USD/CAD is now in an uptrend. The pair is currently facing resistance at level 1.2810. The Fibonacci tool has indicated an upward move to the high of level 1.2896.


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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.