USD/CAD Is Making a Possible Move but Faces Resistance at Level 1.2850

USD/CAD Is Making a Possible Move but Faces Resistance at Level 1.2850

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
The Loonie is making an upward move. Since on January 28, the price could not break above level 1.2850. In the meantime, the pair is trading below the resistance level. A break above the resistance will signal the resumption of the uptrend.

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 52 of the Relative Strength Index period 14. The pair has enough room to rally on the upside.

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair fell to level 1.2765 and resumed upward. On February 1 uptrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the pair will rise to level 2.618 Fibonacci extension. That is the high of 1.3028.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping northward indicating the uptrend. The Loonie is above the 25% 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 has resumed upward move after falling to level 1.2765. The current uptrend is facing resistance at level 1.2850. The Fibonacci tool has indicated a possible move to level 2.618 or 1.3028.


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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.