The US dollar has failed to gather significant momentum from the emergence of the US Consumer Price Index and the inflation report that was rolled out earlier today. Long traders in the USDCAD market have only gathered minimal profits as the pair managed to remain above the 1.3500 price level.
Major Price Levels:
Resistance Levels: 1.3550, 1.3600, and 1.3650
Support Levels: 1.3520, 1.3500, and 1.3450
USDCAD Corrects Minimally Upward Above the 1.3500 Mark
As earlier mentioned, the USDCAD has only managed minimal profits today, even following the release of the two awaited fundamentals for this week. Consequently, this pair has remained largely bearish since the beginning of this week’s trading.
The last price candle on this chart suggests that bear traders are trying to muscle down bullish ones, as the candle displays a long upper shadow. Meanwhile, the lines of the Relative Strength Index (RSI) are revealing bulls are down. This inference is coming from the orientation of the indicator’s lines, which keep falling into the oversold region.
USDCAD Struggles to Stay Above the 1.3500 Mark
USDCAD Bear traders continue to lead as the ongoing session remains bearish. However, the size of the price candle representing the ongoing session is significantly smaller than the ones for the previous session. Consequently, it seems to hint at the fact that bears may be quietly facing some downside rejection.
Nevertheless, price action rains below the 9- and 21-day Smooth Moving Average (SMA) curves, while the RSI lines keep trending upwards, despite the reduction in the distance between the two lines. The behavior of the RSI seems to strengthen the mentioned downside rejection and seems to affirm that the price may rebound towards the 1.3600 mark if buyers are successful in defending the 1.3500 mark.
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