Bears have been in extensive control in the USDCAD market since the trend reversal that occurred when price action failed to break the 1.3600 mark. Price activity may still present more profits to bear traders. Let’s examine the chances of this happening.
Key Price Levels:
Resistance Levels: 1.3250, 1.3300, and 1.3400
Support Levels: 1.3225, 1.3200, and 1.3100
Bulls and Bears are Locked in a Fierce Battle in the USDCAD Market
Bears in the USDCAD daily market seem to be getting exhausted. This could be seen as the market has slowed down significantly in the ongoing session. The ongoing session could be seen to have a very tiny body.
Although price activities now lie below the Bollinger Bands middle limit, the appearance of the price candle representing the ongoing session suggests that buyers are trying to make a re-entry, which has introduced a price contraction. Nevertheless, the Stochastic Relative Strength Index (RSI) indicator lines still possess a downward bearing below the 40 level of the indicator. This shows that prices may still fall into bearish territory.
USDCAD Bulls Are Gradually Making Their Stand
Extending the scope of this price analysis to a USDCAD 4-hour market, we can see that buyers are already making their mark in this market. Here, we can see that short-term traders have started recording minimal profits since two sessions ago. With respect to that, we can see that the Stochastic RSI indicator lines have started rising steadily upwards from the oversold zone.
This started happening after the lines of the indicator spent a considerable amount of time appearing flat out in the oversold region. Should the influencing fundamentals surrounding this pair remain constant, price action may rise further towards the 1.3350 mark.
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