Bullish momentum in the USDCAD daily market has considerably slowed down. This slowdown appears to be largely attributed to the anticipation of the upcoming US CPI data. This key data is expected to provide insights into policymakers’ mindsets regarding potential interest rate adjustments. Consequently, this could influence the pair’s overall trajectory.
Key Price Levels:
Resistance Levels: 1.3700, 1.3800, 1.3900
Support Levels: 1.3600, 1.3500, 1.3400
USDCAD Sees Minimal Rejection
Price movement in the USDCAD daily market has significantly tested the uppermost limit of the applied Bollinger Bands (BB) indicator. However, the ongoing session reveals that the market is reacting to this, with minimal downward rejection, as suggested by the last price candle on the chart. Nevertheless, the market still maintains a favorable position above the middle limit of the BB indicator.
Meanwhile, the Stochastic Relative Strength Index (Stochastic RSI) lines are in the overbought region and have delivered a bearish crossover. This aligns with the minimal downward rejection, but the trajectory of the indicator lines does not indicate any strong movement at the moment.
USDCAD Downward Retracement Stays Minimal
The USDCAD market on the 4-hour chart shows that price action only offers bear traders minimal gains. While a downward rejection was observed on the daily chart, the 4-hour time frame reveals consecutive lower retracements over three straight sessions, albeit at a slow pace. Consequently, the market remains a considerable distance above the middle limit of the BB indicator.
Additionally, the Stochastic RSI lines are slowly declining toward the 80 mark on the indicator. Beyond this, the market’s trajectory may change following the release of the US CPI data this afternoon. Traders who entered the market earlier may consider placing an exit at a comfortable level, especially if the pair continues toward the 1.3725 price level.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply