The USDCAD has latched onto some favorable sentiment that has emanated from the comments of Federal Reserve officials. This has initiated some risk aversion throughout the financial market. From the look of things, the US dollar seems to have benefited from this, causing it to print moderate profits.
Key Price Levels:
Resistance Levels: 1.3800, 1.3900, and 1.4000
Support Levels: 1.3700, 1.3600, and 1.3500
USDCAD Extends Upside Corrections
The USDCAD market had earlier rebounded off the 100-day Exponential Moving Average (EMA) lines on the daily chart. This happened during yesterday’s trading session. The pair had extended the upside correction significantly, with a bullish price candle placing the pair above the 20 and 50-day EMA lines.
Meanwhile, the Relative Strength Index (RSI) indicator lines are now converging for a bullish crossover. Should an upside crossover occur, this could cause the price action to advance further upwards as bullish convictions strengthen.
USDCAD Bulls Are in the Lead
In the USDCAD 4-hour market, it can be seen that bulls are maintaining relevance even as a new session begins. The previous session landed a big win for upside forces. The ongoing session has stayed bullish, appearing at a good distance above the EMA lines. However, it can be seen that the mentioned price candle has an upper shadow.
Simultaneously, the RSI indicator lines stay projected upwards into the overbought region. This indicates that downward forces are acting on price movement. Nevertheless, the position of the price candle above the EMA lines suggests that bulls have a good fighting chance. This supports the use of Forex signals targeting the 1.3750 mark.
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