USD/CAD Retraces to Level 1.3100, May Resume Uptrend

USD/CAD Retraces to Level 1.3100, May Resume 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: Bullish
USD/CAD is in a downward move. The pair fell to level 1.3100 and moved up. After retesting the low, the price is rising.

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 49 of the Relative Strength Index period 14. It is now below the centerline 50. There is a balance between supply and demand.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is making an upward move. On October 26 uptrend, a retraced candle body tested the 38.2% Fibonacci retracement level. This gives the impression that the market will rise and reach level of 2.618 Fibonacci extensions. That is the Loonie will reach level 1.3412.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is above 60% range of the daily stochastic. It is in a bullish momentum but the momentum is weak.

General Outlook for USD/CAD
The USD/CAD is currently retracing for a possible uptrend. According to the Fibonacci tool analysis, the market will reach level 2.618 Fibonacci extension or the high of 1.3412.


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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.