It was earlier predicted that USDCAD bulls are getting exhausted and may make a U-turn near the 1.3600 mark. It has happened as foreseen, and the arrival of the Jolts Job Report seems to have contributed to the downward correction in this market.
Major Price Levels:
Resistance Levels: 159.00, 160.00, and 161.00
Support Levels: 158.89, 158.00, and 157.00
USDCAD Buyers are Going Short
The USDCAD daily market revealed that long traders seem to have started closing their positions since last week when it appeared that upside momentum was terminating. Also, the arrival of the Jolts Job Report seems to have further impacted the pair as price action seems to have increased in downward momentum. Today’s trading session brought the price below the 21-day Simple Moving Average (SMA).
This happened after the price crossed below the 9-day SMA in the previous trading session. Furthermore, the MACD indicator has also started indicating that more traders may be closing their positions as its histogram bars have started growing red below the equilibrium level.
Bear Traders Will Gather More Profits
Moving to a much smaller USDCAD market time frame, it could be seen that bearish traders are more likely to gather profits in the meantime. Trading activities have clearly crossed below the 9- and 21-day SMA curves. Also, it could be seen that bears seem to have grown stronger in the ongoing session, considering the length of the last price candle here.
Furthermore, the MACD indicator has stayed consistent with bearish indications for three sessions now. Meanwhile, it could be seen that the bar of this indicator has grown longer, which shows that bearish momentum is on the rise. Therefore, traders can anticipate the downward correction to extend towards the 1.3400 mark.
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