The greenback has maintained a strong stand for a significant length of time. However, it appears that it has come under pressure. This has caused the USDCAD market to see a pullback in its upward trajectory. At this point, the pair seems pressured under the psychological resistance level of 1.4000.
Key Price Levels:
Resistance Levels: 1.4000, 1.4100, 1.4200
Support Levels: 1.3900, 1.3800, 1.3700
USDCAD Bulls Show Signs of Weakness
Since the USDCAD market tested the resistance at the 1.4100 resistance level, the pair saw a strong downward retracement through the 1.4000 support level. The market rebounded upward in the previous session, but the rebound wasn’t enough to significantly break the 1.4000 price level as resistance.
Subsequently, the market contracted downward, and the ongoing session kept struggling under the same resistance level. The ongoing session has appeared as a hammer-shaped, tiny green price candle above all the Moving Average curves. Despite this, the Stochastic Relative Strength Index (RSI) lines are still falling into the oversold region. Technically, this suggests that the market may succumb to bearish pressure.
Bears in the USDCAD Market Continue to Strengthen Their Grip
The USDCAD 4-hour market provides a short-term view of the market. The 20- and 50-day MA lines can be seen already converging for a crossover above price action for the past four sessions. Also, the last price candle on this chart has appeared as a red price candle despite its small size. Nevertheless, the Stochastic RSI can be seen still rising out of the oversold region. This would have normally signaled a growing bullish momentum.
However, recent price candles can be seen already appearing below the shorter-term MA ribbons. Therefore, traders can brace for impact at lower price levels at 1.3950 and 1.3900. Albeit, traders can keep an eye out for the Initial and Continuing Jobless Claims, the EIA Natural Gas Report, and Leading Economic Indicators for more impetus.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply