Price action in the USDCAD market seems poised to deliver more gains to bear traders, rather than bullish ones. Price action in this market started heading south since the 1st of June, and may extend this move for the time being.
Major Price Levels:
Resistance Levels: 1.3200, 1.3250, and 1.3300
Support Levels: 1.3145, 1.3100, and 1.3050
USDCAD Set to Extend Bearish Move
Price activites in the USDCAD daily market is on a downtrend, which started on the first day of this month. Also, the behaviour of price action at this point isn’t holding any positivity.
Here, it could be seen that an upside retracement had been attempted about 5 trading sessions ago. However, this move failed as it could not claim a strong support level above the 9-day Moving Average (MA) line.
Also, the Relative Strength Index (RSI) indicator can be seen to have just delivered a downward crossover while in the oversold region of the RSI indicator. At the same time, the last red price candle is now testing the support at the 1.3136 price mark. This suggests that price action may soon fall below this support level.
Bears Stays in control of the USDCAD Price Movement
Examining the USDCAD 4-hour market, shows that short traders may record more profit in this market, as indicated by technical indicators.
Here, price movement has fallen below the 9- and 21-day MA line. Also, it could be seen that a bearish crossover is on the way, and this will introduce more bearish impetus to this market. Eventually this will likely cause the downward retracement to get stronger.
Meanwhile, the RSI lines are fallen deep into the oversold region. The lines of this indicator are coming together in the depths of the oversold. Nevertheless, it appears that price action lacks the foothold to deliver a bullish crossover here. Therefore prices may visit the 1.3050 price level.
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