The USDCAD has gained significant traction, thanks to the strengthening US dollar, allowing the pair to rise to a three-month high. At this point, the market anticipates the outcome of the Fed rate decision, which will play a crucial role in determining if the market will continue its upward path.
Key Price Levels:
Resistance Levels: 1.3601, 1.3700, and 1.3800
Support Levels: 1.3600, 1.3500, and 1.3400
USDCAD Faces Rejection After Breaking the 1.3600 Mark
The ongoing session in the USDCAD daily market has seen a leap upward since the previous session from above the support level at the 1.3510 mark. However, it appears that the anticipated fundamentals from the US are causing market participants to wait on the sidelines. This seems to have made the market face rejection shortly after surpassing the 1.3600 mark.
Nevertheless, the market remains bullish on the daily timeframe as the pair continues to trade above the Guppy Multiple Moving Average (GMMA) curves. Additionally, the Relative Strength Index (RSI) has shown an upside crossover in the overbought region.
USDCAD Rejection Clearly Manifests
The last price candle on the USDCAD 4-hour market appears bearish, correcting prices towards lower levels. However, the market remains above most of the GMMA indicator lines, and the RSI indicator lines generally trend upward in the overbought region.
Nonetheless, a close inspection of these indicator lines reveals that they seem to be preparing for a crossover, signaling a potential trend reversal. This uncertainty may make it difficult for traders to decide whether to still utilize bullish Forex signals or not. Nevertheless, traders maintain their bullish stance in anticipation of a favorable outcome from the Federal Reserve rate decision meeting.
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