While the market continues to look for clues about the timing of the Fed rate cut, USDCAD has been printing profits. It appears the US dollar maintains a strong stance against the Canadian dollar. Today, the bullish momentum in the market has increased, and bulls stand a chance to charge further upwards.
Key Price Levels:
Resistance Levels: 1.3700, 1.3850, and 1.4050
Support Levels: 1.3600, 1.3500, and 1.3400
USDCAD Pops Through a Key Resistance Level
As mentioned earlier, price action in the USDCAD market has gathered a significant amount of bullish momentum. As a result, the market has just popped through the middle limit of the Bollinger Bands. Simultaneously, the Stochastic Relative Strength Index (SRSI) indicator has previously delivered a bullish crossover in the heart of the oversold region.
The ensuing lines of the indicator have maintained an upward trajectory. This aligns with the bullish momentum that has brought the pair above the middle limit of the Bollinger Bands. The consistency of bullish indications suggests that Forex signals targeting higher price levels can still be used in this market.
USDCAD Bulls Are Marching On
Extending the price analysis to a USDCAD market in a 4-hour timeframe, we can see that bullish momentum seems to be increasing. Over the past two trading sessions, price action has been hugging the uppermost limit of the Bollinger Bands. Additionally, the Bollinger Bands have been responding positively, expanding to accommodate more upward movement without a resulting rebound in the opposite direction.
Furthermore, the Moving Average Convergence Divergence (MACD) lines are above the equilibrium level, and the base of the indicator is getting progressively taller while appearing solid green. This shows that upward momentum is increasing and has the potential to push the market through the 1.3700 mark.
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