USD/CAD Reaches Bearish Exhaustion, May Reverse at Either 1.3016 or 1.3076

USD/CAD Reaches Bearish Exhaustion, May Reverse at Either 1.3016 or 1.3076

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 is still on a downward move but reaches bearish exhaustion. On October 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The implication is the pair will fall to level 1.272 Fibonacci extension and then reverse. That is the pair will reverse at level 1.3016 to the upside.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downward indicating the downtrend. The Loonie has risen to level 38 of the Relative Strength Index period 14. It is now in a downward move and below the centerline 50.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move but it is reaching bearish exhaustion. On October 20 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement. This indicates that the pair will fall to level 1.272 Fibonacci extension and then reverse. That is at level 1.3076, the market will reverse.

USD/CAD – 1 Hour Chart

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 and it has reached the oversold region of the market.

General Outlook for USD/CAD
The USD/CAD is currently falling but it is reaching bearish exhaustion. The Loonie is said to reach the oversold region of the market. Buyers are expected to emerge to push prices upward. The pair is expected to reverse at either 1.3016 or 1.3076.


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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.