The USDCAD pair has seen significant upside recovery over an extended period. However, more recently, the market seems to be witnessing a dwindling bullish momentum. This seems largely due to investors anticipating important US economic data such as the Initial Jobless Claims, which has the potential to help the greenback record more gains.
Key Price Levels:
Resistance Levels: 1.4100, 1.4500, 1.4900
Support Levels: 1.4000, 1.3900, 1.3800
USDCAD Bull Stays Optimistic
Price action in the USDCAD daily market has risen quite high over previous sessions. This upside correction spanned a period of roughly a month. More recently, price action rebounded off the 20-day Moving Average (MA) line as a support level. However, the upside retracement seems to be losing steam.
Upside momentum has further declined, as portrayed by the last price candle on the chart. Nevertheless, price action stays above all the MA lines. Also, the Stochastic Relative Strength Index (RSI) lines are still rising upwards. This suggests that the market may continue upward following a release of favorable fundamentals.
Buyers in the USDCAD Daily Market Are Retaining Favorable Grounds
Even the USDCAD 4-hour market has revealed that bulls are trying as much as possible to stay in the lead. The last price candle here seems quite small but has appeared green. Meanwhile, it has appeared above all the MA lines and as such placed the market at a favorable position.
In addition, the Stochastic RSI lines can be seen to have risen into the overbought region, but its lines have a downward trajectory. The movement of the Stochastic RSI appears a bit exaggerated, given the fact that price action still lies above all the MA lines. Therefore, traders can retain bullish hopes towards the 1.4100 or 1.4150 mark for short-term gains.
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