USD/CAD Resumes Uptrend but Faces Resistance at 1.3400

USD/CAD Resumes Uptrend but Faces Resistance at 1.3400


Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.3400, 1.3200, 1.3000

USD/CAD Price Long-term Trend: Bullish
USD/CAD has resumed an upward move. On September 23 uptrend; the retraced candle body tested the 50 % Fibonacci retracement level. This indicates that the pair will rise and reach the 2.0 Fibonacci extension level. That is, the pair will rise and reach level 1.3698.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping upward indicating the uptrend. The pair has a bullish crossover as the 21-day SMA crosses over the 50-day SMA. The Loonie has risen to level 54 of the Relative Strength Index. The pair is now in an uptrend zone and above the centerline 50.

USD/CAD Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an uptrend. The Loonie is facing resistance at the 1.3400 high. The USD/CAD has been repelled thrice at the current resistance. The pair has resumed a fresh uptrend to retest that level.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are slowing upward indicating that the market is rising. The Loonie is above 80% range of the daily stochastic. The market has reached the overbought region. Sellers may emerge to push prices down.

General Outlook for USD/CAD
The USD/CAD is currently rising but faces resistance at 1.3400. The Loonie will rise to a new high if the current resistance is breached According to the Fibonacci tool, the market will reach a low of 1.3698.


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.