USD/CAD Rebounds Above Level 1.2700, Resumes Uptrend

USD/CAD Rebounds Above Level 1.2700, Resumes Uptrend

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 is making an upward move. On January 11, the pair was resisted at level 1.2800 as price fell to the previous low. Today, the USD/CAD has resumed an upward move to retest level 1.2800 high. If price breaks the recent high, the upside momentum will resume.

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 44 of the Relative Strength Index period 14. It is below the centerline 50. A further downward move is likely.

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair rebounds above level 1.2700. On the January 11 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. This implies that the index will rise to level 1.618 Fibonacci extensions. That is a high of 1.2509.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping northward indicating the uptrend. 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 resumed its upward move. The upward move is currently facing resistance at level 1.2800. According to the Fibonacci tool analysis; the market will reach level 1.618 Fibonacci extension or 1.2943.


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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.