The US dollar jerks back to life due to some favorable fundamentals, such as the US docket and the rebound in US yields. Nevertheless, the USDCAD has printed moderate losses in today’s session. This suggests that the CAD is creating a downward pull on the pair. At this point, technical indicators aren’t offering much impetus to price movements.
Key Price Levels:
Resistance Levels: 1.3700, 1.3800, and 1.3900
Support Levels: 1.3600, 1.3500, and 1.3400
USDCAD Extends Losses Below the 1.3700 Mark
Price activity in the USDCAD daily market has been retracing to lower price levels ever since the market popped through the 1.4000 mark twelve sessions ago. The previous session only offered a moderate recovery, breaking the downward retracement in the market. However, too quickly, today’s session seems to have been faced with rejection.
Be that as it may, the pair continues trading in between the red and green Guppy Multiple Moving Average (GMMA) lines. Meanwhile, the Relative Strength Index lines have already delivered an upside crossover in the oversold region. Considering the available fundamentals, it appears that upside forces may push the market higher, validating the use of bullish Forex signals.
USDCAD Upside Hopes Not Looking Too Good
Extending this analysis to a 4-hour market time frame, hopes of an upside correction aren’t too viable. This is seen through price candles from the previous session as they continue towards lower levels, though at a reduced pace. In this timeframe, this has further placed the pair below more GMMA indicator lines.
Meanwhile, the SRSI indicator lines have reached the overbought region and have delivered a crossover. However, the ending line doesn’t have a steep downward trajectory afterward. Consequently, this hints at the fact that traders can monitor more USD fundamentals, as this may provide more impetus towards the 1.3750 price level.
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