USD/CAD Reaches Oversold Region at Level 1.2443, Uptrend Likely

Azeez Mustapha
29 July 2021 | Updated: 29 July 2021

Key Resistance Levels: 1.4200, 1.4400, 1.4600
Key Support Levels: 1.1900, 1.1800, 1.1700

USD/CAD Price Long-term Trend: Bearish
Since July 20, USD/CAD has been in a downward move. The market is declining and reaching bearish exhaustion. Meanwhile, on July 22 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the market will rise to level 1.272 Fibonacci extension or level 1.2443.

USD/CAD – Daily Chart

Daily Chart Indicators Reading:
USD/CAD is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The currency pair has a bullish crossover as 21-day SMA crosses over the 50-day SMA. The 21-day and 50-day SMAs are sloping upward.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the USD/CAD is in a downward move. The pair faced rejection twice at the level 1.2800 price level. Meanwhile, on July 21 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that the market will rise to level 1.272 Fibonacci extension or level 1.2443.

USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
USD/CAD is below the 20% range of the daily stochastic. It indicates that the pair is in the oversold region of the market. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

General Outlook for USD/CAD
USD/CAD pair has fallen into the oversold region. The market has reached bearish exhaustion. According to the Fibonacci tool, the currency pair will fall but reverse at level 1.272 Fibonacci extension or level 1.2443.


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Azeez Mustapha

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.