Price action in the USDCAD market has continued to acknowledge the price ceiling at the 1.3600 mark. Much of this is attributed to the limited movements in the US dollar. This condition appears to have provided an opportunity for CAD’s bulls to catch up with the market and reduce some traction. Let’s attempt to understand what might unfold in this market.
Key Price Levels:
Resistance Levels: 1.3589, 1.3600, and 1.3700
Support Levels: 1.3500, 1.3400, and 1.3300
USDCAD Is Trying to Stick Around the 1.3600 Mark
Price action in the USDCAD market hasn’t witnessed significant movements in today’s trading activities. The market is relatively still as price action hovers around the price ceiling at the 1.3600 mark. However, the pair now trades below the 21-day Moving Average line.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator maintains an upside trajectory from under the equilibrium level, despite the discoloration of the bars in this indicator. Consequently, this signals that upside attempts are still weak, and only minimal movements may be seen in this market.
USDCAD May Yet Deliver More Dismal Performance
As price action in the USDCAD 4-hour market has remained near the 21-day MA line for quite some time, it’s evident that price activities have now fallen below the MA line in the ongoing session. Such activities suggest that this market may trend further downwards in the coming sessions.
Similarly, the Relative Strength Index (RSI) indicator lines are now oriented towards the oversold zone. However, corresponding to the movement so far in this market, the displayed bearish crossover is still young. As a result, prices may still trickle down towards 1.3500 in the meantime.
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