Yesterday’s trading activity was particularly profitable in the USDCAD market as US inflation data came in higher than anticipated. The pair leaped on that fundamental. However, today’s trading has been met with fresh challenges as market participants await fresh cues. This seems to have a limiting effect on further price moves.
Key Price Levels:
Resistance Levels: 1.3700, 1.3750, and 1.3800
Support Levels: 1.3650, 1.3600, and 1.3550
USDCAD Hits a Brick Wall Ahead of US PPI
Following yesterday’s impressive performance, the USDCAD daily market has hit an impedance near the 1.3680 price level. As a result, the market has printed a minimal downward correction. Be that as it may, the market has a general bullish characteristic, all thanks to the previous session.
Also, the Stochastic Relative Strength Index (SRSI) indicator lines are still trending upward. With market activities still occurring above the GMMA lines, market participants can anticipate the possibility of a continued upside correction. Traders with such an opinion will likely maintain the use of bullish forex signals on this pair.
USDCAD Consolidates at High Altitudes
Price action in the USDCAD 4-hour market can be seen to have started consolidating since it tested the resistance at the 1.3700 mark. Nevertheless, price activity stays above most of the GMMA indicator lines. The ongoing session seems to have gone thin on bearish momentum, while above most of the GMMA lines.
Consequently, this seems to suggest that downward forces are having difficulty proceeding further. Meanwhile, the SRSI indicator lines have shown a bearish crossover in the overbought region. However, the indicator lines are quite close and haven’t moved out of the overbought region. The US PPI will be key in deciding if the market will proceed towards the 1.3750 mark or not.
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