Some favorable fundamentals from the United States seem to have supplied some strength to the USD. As a result, the USDCAD price action has gained some momentum and is rising towards a very strong resistance level at 1.3417. Let’s see what more can be expected from this market.
Major Price Levels:
Top Levels: 1.3417, 1.3447, and 1.3477
Floor Levels: 1.3400, 1.3380, and 1.3360
USDCAD Bulls Are Gaining More Momentum
For the second consecutive session, USDCAD buyers have been able to further defy headwinds and push prices higher. What’s more, judging by price candles, it appears that buyers’ momentum is getting stronger. The last price candlestick here has broken through the ceiling of the downward-sloping price channel. This has placed the current price in this market at level 50 of the Fibonacci retracement tool. At the same time, the Relative Strength Index (RSI) lines are now trending upwards to indicate that upside momentum is growing stronger, as these lines are rising into the overbought region at 74 and 68. Also, at this point, the curve on the Moving Average Convergence Divergence indicator (MACD) is just converging for a bullish crossover below the equilibrium level. This further suggests that price action may try to break the downtrend at this point.
USDCAD Bulls Are Seeking to Extend an Upside Price Move
On the USDCAD 4-hour market, bulls seem set to keep pushing prices higher. Price action has pushed the uppermost limit of the Bollinger Bands indicator here. Subsequently, a minimal downward bounce occurred, but buyers were quick to intervene. In the ongoing session here, a green price candle has appeared, which signifies that price activity is proceeding in the upward direction. Additionally, the MACD indicator lines have crossed above the equilibrium level. Also, its bars are pointing up, indicating that the bullish momentum in this market is strong. This can be seen as the bars are tall and green. Meanwhile, the RSI curves are also in the overbought region. However, due to the downward retracement in the past session, the lines are trending downward. Nevertheless, traders can prepare to see the pair price rising further towards the 1.3500 mark.
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