The mood of the US dollar improved halfway through the previous week and extended into this week. This allowed USDCAD to experience a moderate bullish retracement. However, the last session brought a strong downward retracement, which erased a significant portion of the previously recorded gains.
Key Price Levels:
Resistance Levels: 1.3600, 1.3700, 1.3800
Support Levels: 1.3500, 1.3400, 1.3300
USDCAD Sustains Above the 1.3500 Threshold
Despite the strong rejection seen in the USDCAD daily market, price activity remains above the psychological price level of 1.3500. However, price activity currently resides below all the Guppy Multiple Moving Average (GMMA) lines.
The last price candle on this chart appeared below all the GMMA lines, and its size indicates that traders seem to be cautious regarding bullish speculation. Nevertheless, the Stochastic Relative Strength Index (Stochastic RSI) lines remain projected upwards. Even the downward rejection in the previous session is not reflected in the indicator.
Will USDCAD Break the Support at the 1.3500 Price Level?
The USDCAD 4-hour market has further revealed activities. Just as price action has remained below all the GMMA lines on the daily chart, price action retains this position here as well. However, the appearance of the price candle suggests that market participants are indeed more cautious.
Consequently, this has kept volatility low as the market continues to hover just above the 1.3500 price level. The Stochastic RSI indicator lines have delivered a crossover, but the lines are oriented sideways, indicating indecision. Therefore, traders will need to look to market-influencing fundamentals for fresh cues toward the 1.3600 mark.
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