Most of the fundamentals surrounding the greenback aren’t delivering significant momentum to price movement in the USDCAD market. The NAHB housing data arrives lower than expected. Other available fundamentals are also not encouraging USD bulls. This gives the pair a generally depressed outlook, even as market participants anticipate the US Pre-Market Open tomorrow.
Key Price Levels:
Resistance Levels: 1.3800, 1.3900, and 1.4000
Support Levels: 1.3700, 1.3600, and 1.3500
USDCAD Is Trickling Towards Support
The USDCAD daily market reveals that price activity has no clear direction in the meantime. We can see that over recent sessions, successive prices have been trickling down toward the 20-day Exponential Moving Average (EMA) lines as support.
The current session has brought the market to trade at the level of the 20-day EMA line. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has delivered a downward crossover above the equilibrium level. The ensuing lines of the indicator after the crossover can be seen trending downward toward the equilibrium level. Consequently, this hints that price action may soon test the support at the technical level for a breakout.
USDCAD May Break Through the 1.3700 Support
In the USDCAD 4-hour market, bearish hopes can still be seen surviving. Here, price activity has fallen below the 20- and 50-day EMA curves. Although the previous session printed a minimal downward correction, the ongoing session seems to have faced some contractions, causing a slight deviation from the downward trend. The body of the last price candle on this chart appears centrally positioned.
Nevertheless, the downward crossover on the MACD can be seen below the equilibrium level. The bars of the MACD also appear red below the equilibrium level. Although the market has been lacking significant volatility, it appears almost certain that the market will fall towards the 1.3700 mark and may break through it in subsequent sessions should available fundamentals fail to instill any positive change.
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