The USDCAD pair continues to fall to lower price levels as the US dollar looks helpless. The Canadian dollar has capitalized on this to drive prices in favor of sellers in this market. In addition, price action seems to have fallen below a notable support level, and this has placed the pair at risk of falling to even lower support levels.
Major Price Levels:
Resistance Levels: 1.3194, 1.3230, and 1.3300
Support Levels: 1.3150, 1.3100, and 1.3050
USDCAD Price Action May Present Bear Traders With More Profits
Since price action in the USDCAD daily market poked through the 1.3286 resistance, headwinds seem to have been vexed. This has caused price action to keep correcting downward towards lower support levels. However, those support levels have continued to fail.
The Relative Strength Index (RSI) also attests to the fact that price action may fall further. This inference comes from the fact that the indicator lines keep running toward the oversold region. By implication, this suggests that downward momentum is still very active and may keep pushing prices lower.
USDCAD Buyers Are Presenting Weak Opposition to Headwinds
On the 4-hour market, it could be seen that the tailwind has been acting, trying to resist further price declines in this market. However, there are signs that this opposition may be too weak to effectively hold prices upward.
Price action remains below the MA lines, which clearly suggests that the market is still bearish. Likewise, the RSI lines keep falling towards the oversold region. Although the appearance of the last green price candle seems to have caused the RSI lines to draw closer to each other, there are no clear indications that an upside crossover may occur in this market. Therefore, this market may extend its downward correction toward the 1.3150 support level.
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