The USDCAD market has stayed on a bullish path since its price action rebounded upward from the support level near the 1.3400 threshold. This upward momentum seems to stem from a relatively strong US economy, as indicated by recent positive PCE and GDP data. Additionally, there are other upcoming fundamentals expected to bring further positive news. This has sustained the upside correction, suggesting that more upward movement may be possible.
Key Price Levels:
Resistance Levels: 1.3950, 1.4000, 1.4050
Support Levels: 1.3900, 1.3850, 1.3800
USDCAD Market Edges Higher
In the previous session, the USDCAD market tested the support level at 1.3900, resulting in an upward price rebound in today’s trading session. Consequently, this has pushed the market further upward. Notably, price activity remains above all the moving average lines on this chart, indicating that bullish forces are dominant and may continue to support the upward correction.
Additionally, the Stochastic RSI lines continue to intersect below price activity, suggesting that upward momentum is likely to persist. Meanwhile, the Stochastic Relative Strength Index (RSI) lines can be seen slightly declining toward the 80 level, with a deflection on the leading line. Nevertheless, price action appears poised to progress further upward.
USDCAD Rebounds Off a Key Support Level
Activity on the USDCAD 4-hour chart seems consistent with what has been observed on the daily chart. This chart reveals that the market has rebounded off a significant technical threshold, as recent price candles have shown upward movement after bouncing off the 20-day EMA line.
These subsequent price candles have formed higher, albeit slightly, maintaining an upward trajectory. Meanwhile, the Stochastic RSI lines have delivered an upside crossover in the oversold region, aligning with expectations for the market to potentially reach the 1.3950 price level soon.
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