The USDCAD market performed impressively towards the end of 2024. This saw the pair surpassing the 1.4000 threshold level. However, at this point, the market anticipates the Initial Jobless Claims data as it could impact the greenback. Consequently, investors seem to have taken a cautious mood ahead of the data.
Key Price Levels:
Resistance Levels: 1.4400, 1.4500, 1.4600
Support Levels: 1.4300, 1.4200, 1.4100
USDCAD Market Seems Poised to Catch a Tailwind
Price activity in the USDCAD daily market can be seen floating above the 1.4342 price level. Also, it should be noted that this level lies at a notable distance above all the Moving Average (MA) lines. However, the last price candle on the chart shows that price action has seen a slight decline in the ongoing session and as such portrays that traders are cautious ahead of key data such as the Initial Jobless Claims for short-term impetus.
The Stochastic Relative Strength Index (RSI) lines have fallen very sharply into the oversold region even though the downward retracement has been quite minimal. This shows that downward forces are quite weak in this market currently.
USDCAD Market Stays Afloat
Price action in the USDCAD 4-hour market is revealing that even though traders are maintaining a cautious stance, upside forces aren’t letting go. Recent price candles in the market have shown very little activity as they appeared very small. The last price candle here can be seen appearing as a doji-shaped green price candle below the merged 20- and 50-day MA lines.
Technically, this suggests that upside forces are resisting the effect of downward forces in the market. Meanwhile, Stochastic RSI lines are now crossed at the 50 mark of the indicator, but the ensuing lines of the indicator are moving sideways. This further affirms the cautious mood in the market, therefore, traders can still aim at the 1.4400 price level.
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