Can Bears Push The Loonie To Below 1.3000 Psychological Support Level?
The USDCAD currency pair on the 4-Hour Chart has been in a downtrend since 13 November 2020 when it registered the high price at 1.31715 On 25 November 2020, the Loonie recorded the low price of 1.29857.
When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms the Loonie’s downward direction.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of financial instrument.
Additionally, the Relative Strength Index Oscillator registers values below the fifty line which indicates negative sentiment.
All three technical indicators are in agreement with regards to the downward bias of the pair.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 1.29778 (161.8%).
- The second price target is seen at 1.28882 (261.8%).
- The third price target is projected at 1.27433 (423.6%).
The Loonie is currently trading below the downtrend line. The presence of the Bearish Engulfing pattern hints at a potential rally to the downside.
Its current price is 0.79% below last week’s close after a sharp decline in price during a period of heavy selling. Of course, supply and demand as well as the crowd sentiment will determine the future course of Loonie.
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