USD/CAD Is in an Oversold Region, May Resume Upward

USD/CAD Is in an Oversold Region, May Resume Upward

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. The overall trend is bearish but there are bullish signals. A retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that the pair will fall to level 1.618 Fibonacci extensions. That is the low of 1.2651.

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

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair has resumed upward move. 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 the high of 1.3048.

USD/CAD – 30 min 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. The pair has resumed upward move.

General Outlook for USD/CAD
The USD/CAD has been in a downward move but there are bullish signals as price is likely to rise. According to the Fibonacci tool analysis, the market will reach level 1.618 Fibonacci extension or 1.3048


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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.