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USDCAD, Fibonacci Analysis

11/16/2022 3:16 PM


On the daily chart, the quotes of the USD/CAD pair have been correcting downwards for the fifth week towards an upward trend and are currently close to 1.3195 (correction 50.0%, ascending fan line 50.0%). If it is broken, the decline will continue to 1.3035 (correction 61.8%). The key "bullish" level is 1.3560 (correction 23.6%), supported by the middle line of Bollinger bands, which breakout allows growth to 1.3880 (correction 0.0%).

Technical indicators confirm the probability of a decline: Bollinger bands are directed downwards, MACD is increasing in the negative zone, and Stochastic has entered the oversold zone but is directed horizontally.


On the weekly chart, the price continues to correct downwards to the long-term uptrend. The quotes are close to 1.3195 (correction 38.2%), and in case of its breakdown, they will continue to decline to the levels 1.2970 (correction 50.0%) and 1.2760 (correction 61.8%), for which they will have to break through the ascending fan. Otherwise, growth may resume with the prospect of returning the trading instrument to 1.3880 (correction 0.0%).

Technical indicators do not give a single signal: upward reversal of Bollinger bands indicates a continuation of the long-term upward trend, while downward reversal of Stochastic and a decrease in the MACD in the positive zone do not exclude the continuation of the corrective decline.

Soon, further price decline seems more likely, and in case of a breakdown of 1.3195 (correction 50.0%, D1, correction 38.2%, W1), negative dynamics will continue to 1.3035 (correction 61.8%, D1) and 1.2970 (correction 50.0%, W1). The breakout of 1.3560 (correction 23.6%, D1) will give the prospect of returning quotes to 1.3880 (correction 0.0%, D1, W1).

Resistance levels: 1.3560, 1.3880. | Support levels: 1.3195, 1.3035, 1.2970.

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