Generally, price action in the USDCAD market continues to retrace a new support level at the 1.3300 price mark. The technical inference drawn from trading indicators also agrees with the opinion that price action may eventually find support at the mentioned price mark. However, this may be subject to influences coming from economic developments in the concerned region.
Major Price Levels:
Resistance Levels: 1.3392, 1.3420, and 1.3470
Support Levels: 1.3352, 1.3322, and 1.3300
USDCAD Extends Losses Towards the 1.3330 Price Mark
After price action spontaneously broke down the support formed by the middle limit of the Bollinger Bands indicator on the 1st of June, price action in the USDCAD market has remained under the influence of headwinds. More downward retracement has occurred in the current trading session, through the last price candle on this chart. Furthermore, indications arising from technical indicators are also predicting that more retracements may be witnessed in the ongoing session, and possibly the coming ones. A downward crossover can be perceived on the Relative Strength Index (RSI) indicator. Also, the Moving Average Convergence Divergence (MACD) indicator isn’t showing any signs of a possible trend reversal. The bars of the MACD stay red below the equilibrium point to suggest that downward forces are still formidable.
USDCAD Bulls Are Offering Some Resistance to Headwinds
Moving to the 4-hour market, it is revealed that bulls are trying to stage some form of resistance to abet the headwinds. However, this resistance to downward pressure seems weak and may fail. The lines of the MACD continue to proceed in their downward path following the recently delivered downward crossover. Also, the bars on this indicator aren’t showing signs of weakness in the current price trend, as they retain their solid red appearance. Technically, this suggests that downward forces are still strong. Nevertheless, the RSI indicator seems more sensitive, as it has quickly reflected the gains recorded at this point. Therefore, price action in this market seems to be on its way toward the 1.3300 price level.
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