The U.S. dollar has assumed a stronger stance since last week when the Jobless Claims data came in lower than anticipated. This boosted the greenback’s sentiment against its counterparts. Today, price movements in the USD/CAD market suggest that the pair may continue its upside correction after rebounding upwards.
Key Price Levels:
Resistance Levels: 1.3800, 1.3850, 1.3900
Support Levels: 1.3700, 1.3650, 1.3600
USD/CAD Downward Rebound Off the 1.3800 Price Mark Gets Breached
The USD/CAD market rebounded off the 1.3800 resistance level approximately two sessions ago. This resistance level also appears to align with the upper limit of the Bollinger Bands indicator.
However, the current session suggests that upward momentum might be returning. At present, the Stochastic Relative Strength Index (Stochastic RSI) lines are falling towards the 80 mark. This seems to contrast with the current session, indicating the need for further scrutiny.
The USD/CAD Upside Rebound May Still Be Intact
In the USD/CAD 4-hour market, price action indicates that it has rebounded off the lower band of the Bollinger Bands indicator. However, the current session has produced a minor downward price deflection. Meanwhile, the Stochastic RSI lines are still rising from the oversold region.
This aligns with the fact that price action remains above the lower limit of the Bollinger Bands indicator. Therefore, bullish traders can continue targeting the 1.3800 and 1.3850 price levels for short-term gains, with a focus on upcoming Retail Sales and Unemployment data.
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