USD/CAD Is in an Oversold Region, May Reach Level 1.2600

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
The Loonie is in a downward move. The pair tested level 1.3600 and continue the downward move. A green candle body tested 0.382 Fibonacci retracement level. The market is likely to reach a low of 2.618 Fibonacci retracements. The price has two target levels. The first one will be at the 1.618 Fibonacci extension level. The second one will be at  level 2.618 extension level.

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downward indicating that the market is falling. The Loonie has fallen to level 20 of the Relative Strength Index. The pair has reached the oversold region of the market. Buyers may soon appear to push prices upward.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is falling in a descending channel. The bulls have earlier broken the resistance line but face rejection at level 1.3450. The Loonie resumes downtrend after rejection. The selling pressure will persist to the low of 1.2600.

4-hour Chart Indicators Reading
Presently, the SMAs are slowing downward indicating that the market is falling. The Loonie is below 20% range of the daily stochastic. It indicates strong bearish momentum. The Loonie is now in an oversold region.

General Outlook for USD/CAD
The USD/CAD pair is now in an oversold region. Buyers are mostly likely  to emerge to push the coin upward. The downtrend will persist to the low of 1.2600.


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