USD/CAD Reaches Oversold Region at level 1.33850, Buyers Likely to Emerge

Share On Facebook
share on Linkedin

Key Support Levels: 1.34000, 1.32000, 1.30000

©
Key Resistance Levels: 1.42000, 1.44000, 1.46000

USD/CAD Price Long-term Trend: Bearish
The USD/CAD pair is on a downtrend. A correction candle is testing the 0.382 Fibonacci retracement level. This indicates that the Loonie will fall and reach a target price of 2.619 Fibonacci retracement level. The target price has been achieved and the market is currently consolidating. The RSI is indicating that  the Loonie is in the oversold region.


USD/CAD – Daily Chart

Daily Chart Indicators Reading:
The 50-day SMA and the 21-day SMA are sloping downwards indicating the bearish trend. The Loonie has fallen to level 28 of the Relative Strength Index. This indicates that the pair is in the oversold region and also below the centerline 50.

USD/CAD Medium-term Trend: Bearish
The Loonie is in a downtrend. The market has reached the first target and the second target of the Fibonacci tool. The price fell to level 1.33595 low and moved up. The pair corrected upward but was resisted at level 1.35000. After the retest, the downtrend is continuing. It is likely we are going to short again.


USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
Presently, the 21-day SMA and 50-day SMA are slowing downward indicating the downtrend. The Canadian dollar is below 40% range of the daily stochastic. This indicates that the pair is in a bearish trend.

General Outlook for USD/CAD
The USD/CAD pair is in approaching the oversold region. The market is sowing a bearish exhaustion as price consolidates.

Source: https://learn2.trade

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200805 02:33:25