The USDCAD currency pair on the Daily Chart has been downtrend since 26 June 2020 when it reported a high price of 1,37147, followed by a sequence of lower tops and lower bottoms.
The USDCAD currency pair reported a low price of 1,31310 on 26 August 2020.
Scientific review of Oscillator Analysis
When applying Oscillator Analysis to the price chart, it can be seen that the price is trading below the SMA 60-period Moving Average Line, a fact which confirms the Loonie’s downward trajectory.
In addition, the Moving Average / Convergence Divergence (MACD) oscillator is recording values below the zero line that show the bearish bias of the pair.
In addition, the Relative Strength Index (RSI) Oscillator registers values below the 50 line that reflect negative feelings. Both three statistical metrics are in agreement with respect to the downward tendency of the pair.
Three price targets may be determined by applying the Fibonacci method to the price map.
- The first price level is calculated to be 1,33892 (161.8 per cent).
- The second price target is 1.32309 (261.8 per cent).
- The third price target is expected to be 1,29747 (423.6 percent).
- Although the first and second price targets have already been met, Loonie is currently trading below the downtrend line.
The emergence of the Bearish Engulfing pattern hints at a possible more downtrend on the cards. Of course, supply and demand, as well as the feeling of the crowd, would decide Loonie’s future path.
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