In recent times, downward forces have dominated the USD/CAD market. Consequently, this has caused the pair to be choppy. However, given the recent behavior of price action, we might want to assume that the USD/CAD price may be on the brink of breaking the above-mentioned recent trend.
Major Price Levels:
Top Levels: 1.3408, 1.3448, 1.3500
Floor Levels: 1.3400, 1.3370, 1.3340
USD/CAD Price May Have Found Support at 38.20
During yesterday’s trading session, the USD/CAD price broke the Fibonacci level of 38.20 at the price level of 1.3382 to the upside. Furthermore, the price candle for this ongoing trading session has formed just above the aforementioned support level. The down wick of this candle can be seen just touching the Fibonacci level 38.20. Also, technical indicators seem to be attesting to the fact that the price may continue to move upward from this level. The stochastic RSI lines can be seen now moving upwards after performing a crossover in the oversold zone. Likewise, the MACD indicator lines can now be seen coming together for a bullish crossover just below the equilibrium level. Technically, all the signs on the daily market are predicting that the pair’s price may continue to increase.
USD/CAD Stays Out of Danger of Downward Forces
Coming to a shorter time frame market of 4 hours, price activities are looking a bit more interesting, during the past two trading sessions price candle broke through the middle limit of the Bollinger band to the upside. However, it appears as if there was an immediate reaction to this development, as the next price candle for the next trading session bounced prices in the opposite direction, albeit with a lesser magnitude. According to this chart, price was pushed back up, placing the current price level further above the middle limit of the Bollinger band. Meanwhile, the RSI is now overbought, but with a mangled appearance. At the same time, the MACD indicator keeps revealing that the upside strength may keep growing stronger. This could be seen as the indicator lines moving upward from below the equilibrium level. Consequently, traders can project that the price may keep moving toward the 1.3450 mark.
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