Trading activity in the USDCAD market started today with bearish intentions. Today’s session saw the market fall through the support at the 1.3510 mark. Traders had eyed the FOMC to provide upside impetus for the market, yet after the arrival of the minutes, price action has continued on a downward trajectory.
Key Price Levels:
Resistance Levels: 1.3500, 1.3600, and 1.3700
Support Levels: 1.3400, 1.3300, and 1.3200
USDCAD Will Likely Fall Below the 1.3500 Mark
Price action in the USDCAD market has descended to a psychological support level. Yet, this market may yet deliver further downward corrections. The ongoing session remains bearish considering the appearance of the corresponding price candle. The green Guppy Multiple Moving Average (GMMA) lines are converging, but the price candle representing the ongoing session has continued to fall through them as trading activities approach the red set of the indicator.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is now very close to delivering a bearish crossover above the equilibrium level. If eventually achieved, this will strengthen bearish convictions, and prices will fall with more intensity.
Bears Tighten Their Grip on the USDCAD Market
The USDCAD 4-hour market suggests that downward forces are gaining momentum. This is revealed as the last price candle here is almost at the same level as the last red GMMA line. In addition, the MACD had earlier attempted a trend reversal move, but upside forces were unable to initiate that.
At this point, the lines of this indicator have resumed a downward path toward the equilibrium level. At this point, traders will want to stick to the use of bearish force signals in this market. Also, since the FOMC minutes have failed to stimulate the bulls, bearish traders may target profits towards the 1.3400 mark.
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