USD/CAD Falls to Level 1.3013, May Resume an Uptrend

USD/CAD Falls to Level 1.3013, May Resume an 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
USD/CAD is in a downward move. The downtrend has reached bearish exhaustion. On November 9 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This implies that the pair will fall to level 1.272 Fibonacci extensions and later reverse. The reversal will be at level 1.3013.

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 fallen to level 38 of the Relative Strength Index period 14. It is below the centerline 50. Also, it indicates that it is approaching the oversold region.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move. On November 9 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This gives the impression that the market will reach a level of 1.272 Fibonacci extensions and reverse. However, the reversal will not be immediate.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is above the 70% range of the daily stochastic. It is in a bullish momentum.

General Outlook for USD/CAD
The USD/CAD downtrend has bearish exhaustion. The pair is expected to rise. According to the Fibonacci tool analysis; the market will reach level 1.272 Fibonacci extension or the low of 1.3013 and reverse.



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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.