USD/CAD May Further Decline, Faces Rejection at Level 1.2500

USD/CAD May Further Decline, Faces Rejection at Level 1.2500

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 was previously in a sideways move but the bears have broken the current support. For the past week, the pair has been in a downward move. This week the selling pressure has resumed. According to the Fibonacci tool, the market will decline to level 2.0 Fibonacci extension or level 1.2281.

USD/CAD – Weekly Chart

Daily Chart Indicators Reading:
The 50-day and the 21-day SMAs are sloping downward indicating the downtrend. The Loonie is now at level 31 of the Relative Strength Index period 14. The Loonie is approaching the oversold region. The market may further decline.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is now in a downward move. For the first week of March, the pair has been trading in a sideways trend. On March 11, the bears broke the sideways trend. On March 15 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that USD/CAD is likely to further decline to the level 1.618 Fibonacci level. That is, to the low of level 1.2360.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping downward indicating the downtrend. The Loonie is below the 20% range of the daily stochastic. It indicates that the pair is in the oversold region of the market.

General Outlook for USD/CAD
The USD/CAD has resumed selling pressure after the termination of the sideways trend. The pair is likely to continue the downward move after rejection at level 1.2500. The pair is expected to decline to level 1.2360.

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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.