USD/CAD Retests Level 0.2800 and Resumes Downward Move

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 has been in a downward move. The downtrend is likely to continue. On December 14 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 1.2383.

Daily Chart Indicators Reading:
The 50-day and the 21-day SMAs are sloping downward indicating the downtrend. The Loonie has fallen to level 39 of the Relative Strength Index period 14. It is below the centerline 50.

USD/CAD Medium-term Trend: Bearish
On the 1-hour chart, the pair is still in a downward move. A retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the index will fall to level 1.618 Fibonacci extensions. That is a low of 1.2719.

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is below the 20% range of the daily stochastic. It is in a bearish momentum. The pair has resumed its downward move.

General Outlook for USD/CAD
The USD/CAD has been in a downward move. According to the Fibonacci tool analysis, the market will reach level 1.618 Fibonacci extension or 1.2719. There could be a further downward move after this.


Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results