Despite the general weak stance of the US dollar due to market anticipation of Fed rate cuts, the USDCAD has been able to stay afloat. At this point, the market continues to edge higher towards the resistance level at 1.3700. The US dollar still seems supported by fundamentals, with the Fed’s speech being the key event that will attract the most attention.
Key Price Levels:
Resistance Levels: 1.3700, 1.3800, and 1.3900
Support Levels: 1.3600, 1.3500, and 1.3400
USDCAD Continues Along an Upside Sloping Trendline
The USDCAD market on the daily chart seems to have kept trending along an upside-sloping trendline. Also, price action has resurfaced above all the Exponential Moving Average (EMA) lines. Likewise, the ongoing session holds a considerable amount of gain while standing above the EMA lines.
Additionally, the Stochastic Relative Strength Index (SRSI) lines can be seen rising upward into levels above the 50 mark. The lines of this indicator maintain an undeflected trajectory and, as such, predict that upside forces are maintaining dominance in the market.
USDCAD Bulls Stay Unshaken Despite Minimal Downward Corrections
Thanks to the massive gains seen in the previous session, the USDCAD has maintained a generally bullish characteristic on the 4-hour chart. Similar to what was seen on the daily price chart, price activity remains above all the EMA curves.
Meanwhile, although the SRSI indicator lines are below the 50 level, we can see that it has delivered a bullish crossover, and the lines have been rising upwards ever since. Consequently, it can be deduced that this market remains on an upside path. However, traders will be hoping to get more impetus from the Fed’s speech later today. This will likely determine if the market will approach the 1.3750 price level.
Do you want to take your trading to the next level? Join the best platform for that here.
Leave a Reply