Price activity in the USDCAD market has taken a sharp dive towards the support level at the 1.3510 mark. This seems to be an aftereffect of weak fundamentals surrounding the US dollar. This instantly favored the bears in the market. With this considerable decline, let’s try to see how the market will fare ahead of possible market-influencing fundamentals.
Key Price Levels:
Resistance Levels: 1.3537, 1.3600, and 1.3700
Support Levels: 1.3500, 1.3400, and 1.3300
USDCAD Makes Sharp U-turn Towards Lower Support Levels
The soft US data has significantly impacted the USDCAD market. This allowed the Canadian dollar to rise against the dollar, causing it to fall sharply towards the previously surpassed support level.
This places the pair at the risk of printing more losses as its price falls below the green set of the Guppy Multiple Moving Average (GMMA) lines. Although price action remains above the red GMMA lines, the Stochastic Relative Strength Index (SRSI) indicator lines now have a downward bearish trend in the overbought region. Consequently, this points out that traders might want to continue using bearish Forex signals.
Bearish Momentum Strengthens in the USDCAD Market
While the USDCAD market remains above the red GMMA lines on the daily chart, it can be seen that price action here has fallen below both the green and red GMMA lines. Even the ongoing session is occurring at a distance below the crossing lines of the GMMA indicator.
Likewise, the SRSI indicator lines have continued to trend downward towards the oversold region. However, it should be noted that the leading lines of the SRSI indicator seem hyperextended. This suggests that the market bears may soon get exhausted. Therefore, traders can anticipate that price action may hit the 1.3510 mark.
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