The USDCAD market has continued to retrace higher price levels. This has happened despite the mixed S&P manufacturing PMI data for July and June. Also, the comments made by Band of Canada (BoC) at this point seem dovish, which was supposed to put selling pressure on the pair. However, the fact that the Bank of Canada revealed that they may continue lowering interest rates has propelled the USDCAD pair. Let’s further examine the pair.
Key Price Levels:
Resistance Levels: 1.3850, 1.3900, and 1.4000
Support Levels: 1.3800, 1.3750, and 1.3700
USDCAD Price Continues Seeing Modest Gains
Today’s trading session in the USDCAD market has started on the right foot towards higher price levels. However, it could be perceived that only modest gains have been seen so far. Meanwhile, trading activity has continued above the technical support level at the 1.3800 price mark.
Likewise, the appearance of upper shadows above and below the corresponding price candle for the ongoing session suggests that the session hasn’t come under much pressure. Consequently, trading activity has continued above all the Exponential Moving Average (EMA) curves. Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines have hit the 100 level of the indicator and now continue to trend sideways. This suggests that upside forces are persistent and may keep the market up.
USDCAD Stays Bullish Straight Up
Even in a 4-hour USDCAD chart, we can see that price action continues to make higher highs. Also, these higher highs have been made very rapidly, favoring bullish traders. Price action seems ready to maintain the pace towards the resistance at roughly 1.3850.
Price action continues to have an upward trajectory even after rising significantly above the EMA lines. Additionally, the SRSI indicator lines have delivered a bullish crossover while just below level 50 of the indicator. Going by both signs and available fundamentals, it is likely that this market will continue toward the 1.3900 mark.
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