Price action in the USDCAD market recently gained some upward momentum, which pushed prices considerably above the 1.3600 mark. However, this momentum was lost in subsequent trading sessions, and prices fell below the above-mentioned mark, and eventually got to 1.3427. Nonetheless, let us further investigate this market.
Major Price Levels:
Top Levels: 1.3427, 1.3460, 1.393
Floor Levels: 1.3400, 1.3380, 1.3350
USD/CAD Is Barely Trading Above the 38.20 Fibonacci Level
USD/CAD price bounced back when it reached the support level of 1.3386, which aligns with the 38.20 Fibonacci level. Nevertheless, the upside bounce stays significantly below the 1.3500 price mark. The last price candle here is a green Doji with short wicks. And, this reveals that although the bulls are engaged in a tough battle with the bears, they have managed to remain on top in the ongoing session. Furthermore, the MACD continues to show that downside momentum is weakening at this point. This could be seen through the pale red histogram bars that are now appearing on the indicator. Also, the RSI indicator lines have shown an upside crossover deep in the oversold region. Consequently, traders in this market can expect only a minimal price increase.
USD/CAD Continues to Show Signs of a Lack of Significant Upside Momentum
Though there are signs that prices may still increase, there are chances that the increase will not be significant. The last price candle here is almost aligned at the same level as the 9-day MA. Additionally, on the live market, this last candlestick keeps changing colors back and forth, from green to red. The lines of the MACD keep moving slightly upward, towards the 0.00 level of the indicator. However, it is important to note that the histogram bars above the 0.00 level of the MACD are now appearing pale green. Consequently, this portrays that the market’s upside momentum is weakening. Also, the Stochastic RSI indicator lines are now in the overbought area and appear to have given a downward crossover. By evaluating, market signs, traders can expect that the market may only move toward the 1.3450 mark in a short while.
Do you want to take your trading to the next level? Join the best platform for that here.