The USDCAD currency pair on the Daily Chart has been in a downtrend since 26 June 2020 when it registered the high price at 1.37147, followed by a series of lower tops and lower bottoms.
On 26 August 2020, the USDCAD currency pair recorded the low price of 1.31310.
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 pair.
In addition, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates negative sentiment. All three technical indicators are in agreement in 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 1.33892 (161.8%).
- The second price target is seen at 1.32309 (261.8%).
- The third price target is projected at 1.29747 (423.6%).
While the first target and the second price targets have already been breached, the Loonie is currently trading below the downtrend line.
The presence of the Bearish Engulfing pattern hints at a potential further downtrend is on the cards. Of course, supply and demand as well as the crowd sentiment will determine the future course of Loonie.
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