USD/CAD Faces Rejection at Level 1.2700 as the Market Continues Its Downward Move

USD/CAD Faces Rejection at Level 1.2700 as the Market Continues Its 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 moved up and retested level 1.2900. It indicates that the pair is likely to fall. On December 16 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 extension. That is, the low of level 1.2378.

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 fallen to level 35 of the Relative Strength Index period 14. It is below the centerline 50. A further downward move is likely.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair corrected thrice and on each occasion, it will fall. On January 4 downtrend, 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 1.2509.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is above the 20% range of the daily stochastic. It is in a bullish momentum. The pair is still in the oversold region.

General Outlook for USD/CAD
The USD/CAD has been in a downward move. The downtrend has not subsided, According to the Fibonacci tool analysis, the market will reach level 1.618 Fibonacci extension or 1.2509.


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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.