USD/Cad Reaches the Oversold Region, May Reverse at Level 1.2535

USD/Cad Reaches the Oversold Region, May Reverse at Level 1.2535

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
The Loonie is on a downward move. The price broke level 1.2600 to resume the downward move. Nonetheless, on February 16 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.272Fibonacci extension and reverse. That is at the low of level 1.2539.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day and the 21-day SMAs are sloping downward indicating the downtrend. The Loonie has fallen to level 36 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50. It is approaching the oversold region.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair is in a downtrend. On February 19 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This retracement indicates that the pair will fall to level 1.272 Fibonacci extension and reverse. That is at the low of 1.2535.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the SMAs are sloping southward indicating the downtrend. The Loonie is in the oversold region above the 20% range of the daily stochastic. Buyers are likely to emerge.

General Outlook for USD/CAD
The USD/CAD has resumed a downward move. The pair has fallen into the oversold region. The Fibonacci tool has indicated a possible reversal at level 1.272 or 1.2535.

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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.