USD/CAD Resumes Downtrend After Retesting Level 1.2800

11 February 2021 | Updated: 11 February 2021

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 was earlier in an upward move but faces rejection at level 1.2800. The pair has resumed selling pressure. On December 14, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the pair will fall to level 1.618 Fibonacci extension or level 1.2406.

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 44 of the Relative Strength Index period 14. The pair is in the downtrend zone and below the centerline 50.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the pair has resumed downward. Initially, the Loonie was fluctuating between levels 1.2760 and 1.2840. The bears broke level 1.2760 to resume the downtrend.

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 25% range of the daily stochastic. Buyers are likely to emerge.

General Outlook for USD/CAD
The USD/CAD has resumed a downward move after retesting level 1.2800. The selling pressure will persist as the pair will fall to reach the low at 1.2400.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.