USD/CAD Reaches Oversold Region at Level 1.2648, Buyers Are Likely to Emerge

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
USD/CAD has been in a downward move. The downtrend is likely to continue. On November 9 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the pair will fall to level 1.618 Fibonacci extensions. That is, the downward move will extend to the low of level 1.2648.

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downward indicating the downtrend. The Loonie has fallen to level 27 of the Relative Strength Index period 14. It is below the centerline 50. The pair is now in the oversold region of the market.

USD/CAD Medium-term Trend: Bearish
On the 30- mins chart, the pair is still in a downward move. A retraced candle body tested the 78.6% Fibonacci retracement level. This implies that the index will fall to level 1.272 Fibonacci extensions. That is a low of 1.275.

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is above the 40% range of the daily stochastic. It is in a bullish momentum. The pair has resumed downward move.

General Outlook for USD/CAD
The USD/CAD has been in a downward move. From the price action, the pair’s downtrend is ongoing. According to the Fibonacci tool analysis, the market will reach level 1.618 Fibonacci extension or 1.2648.



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