USD/CAD Retests Overbought Region at Level 1.2500, May Face Rejection

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

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USD/CAD Price Long-term Trend: Bearish
USD/CAD has resumed a partial upward move after reaching the low of 1.2300. Presently, the currency pair is trading in the overbought region of the market. The pair is trading at level 1.2406 at the time of writing. Meanwhile, on June 23 downtrend, a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the market will fall to level 2.618 Fibonacci extension or level 1.1877.


USD/CAD – Daily Chart

Daily Chart Indicators Reading:
USD/CAD has risen to level 64 of the Relative Strength Index period 14. It indicates that the pair is in the uptrend zone and above the centerline 50. The pair is also approaching the oversold region of the market. The 21-day and 50-day SMAs are sloping downward.

USD/CAD Medium-term Trend: Bearish
On the 4-hour chart, the USD/CAD is trading in the overbought region of the market. Sellers are likely to emerge in the oversold region to push prices down. The price bars are above the moving averages. A break below the moving averages will signal the resumption of selling pressure.


USD/CAD – 4 Hour Chart

4-hour Chart Indicators Reading
USD/CAD is above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum. However, the market has reached the overbought region. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for USD/CAD
USD/CAD pair is now in a downward move. The pair is currently trading in the overbought region. The selling pressure will resume if the pair faces rejection at the 1.2500 resistance zone.

 

Source: https://learn2.trade

 

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