USD/CAD Resumes Downward After Rejection at Level 1.3120

USD/CAD Resumes Downward After Rejection at Level 1.3120

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 has been in a downward move. Since September, the price has been correcting upward to break level 1.340. However, the bulls are finding penetration difficult at the recent high of level 1.340. The bulls are buying the dips as they resume upward.

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 46 of the Relative Strength Index period 14. It is below the centerline 50. The pair is moving upward.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downward move. On November 16 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This gives the impression that the market will fall to level 1.618 Fibonacci extensions. That is the low of 1.2996.

USD/CAD – 4 Hour Chart

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

General Outlook for USD/CAD
The USD/CAD is making a downward move after reaching level 1.3120. The upward move is facing rejection at level 1.3120. According to the Fibonacci tool analysis, the market will reach level 1.618 Fibonacci extension or 1.2996.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.