Price activities in the USD/CAD market have failed to break a short-term but important resistance level of 1.3597. Subsequently, price action in the current session has fallen further below this resistance. Will price action continue to fall lower? Let’s get a closer look at developments in this market.
Major Price Levels:
Top Levels: 1.3597, 1.3645, 1.3700
Floor Levels: 1.3581, 1.3525, 1.3450
USD/CAD May Stay Near 1.3597 Price Level
Price action on the USD/CAD has fallen under the resistance level of 1.3597 on the daily chart. However, technical indicators seem to be revealing that the pair’s price may not fall significantly lower from here. Looking at the Stochastic RSI, we can see that the lines of this indicator have given an upward crossover in the oversold region. At the same time, the lines of the MACD indicator have performed a bullish crossover, but they appear to be moving fairly sideways at the moment. These two trading indicators seem to be somewhat contradictory. Consequently, this appears to be revealing that upward and downward forces are in a tussle. Therefore, traders in this market will have to wait a bit on the sidelines, to gain better insight into the market.
USD/CAD Is Falling Towards Important Support Level
Moving to the USD/CAD 4-hour market, we can perceive that price action has crossed above the middle limit of the applied Bollinger band indicator. However, over the past eight trading sessions, selling has been the dominant move. Consequently, this has pushed the pair’s price towards the support created by the middle limit of the Bollinger band indicator. Meanwhile, the Stochastic RSI seems prepared to give a bearish crossover in the overbought region. At the same time, the MACD lines keep moving toward the 0.00 mark from below. Also, the bar of the MACD histogram continues to look filled, which indicates that upside momentum may be building up. Therefore, traders can consider going long, however, with caution by placing a stop at 1.3560. This is because the price can rebound upward from 1.3565 to 1.3640.
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