USD/CAD Faces Rejection at Level 1.3250, May Resume Downward

USD/CAD Faces Rejection at Level 1.3250, May Resume Downward

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 in a downward move. The upward move is facing resistance at level 1.3250. On October 13 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that the pair will fall and reach level 1.618 Fibonacci extension level. That is the low of level 1.2850.

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 50 of the Relative Strength Index period 14. It is on par with the centerline 50. Also, it indicates that there is a balance between supply and demand.

USD/CAD Medium-term Trend: Bearish
On the 1-hour chart, the pair is in a downward move. On November 3 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This gives the impression that the market will reach level 1.272 Fibonacci extensions and reverse. However, the reversal will not be immediate.

USD/CAD – 1 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is below the 80% range of the daily stochastic. It is in a bearish momentum.

General Outlook for USD/CAD
The USD/CAD is in a downward move after rejection from level 1.3250. According to the Fibonacci tool analysis; the market will reach level 1.272 Fibonacci extension or the high of 1.3032.


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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.