USDCAD has managed to print some gains during today’s session. Technical indicators had previously hinted that price action might rebound upwards. However, the arrival of the ISM Service PMI has aided the pair in achieving this upside correction.
Key Price Levels:
Resistance Levels: 1.3700, 1.3800, and 1.3900
Support Levels: 1.3600, 1.3500, and 1.3400
USDCAD Bulls Leap Upward but Face Heavy Contraction
The US ISM Service PMI data has certainly excited the USDCAD market. The last price candle here has shown a considerable price increase. However, the session seems to be up against market forces that seek to contract price movements. The corresponding price candle for the ongoing session has revealed that market forces have battled hard.
Meanwhile, the 20- and 50-day Exponential Moving Average (EMA) curves can be seen converging for a bullish crossover. Technically, this constitutes headwinds in the market. The Moving Average Convergence Divergence (MACD) lines are below the equilibrium levels. Nevertheless, the pale red appearance of the last price candle suggests that upside forces maintain a noticeable effect on price movement.
Upside Forces Maintain a Brave Stance Against Headwinds in the USDCAD Market
The behavior of price action in the USDCAD 4-hour market suggests significant volatility. However, the market has had a general upside orientation since the upside rebound that occurred about four sessions ago. The previous session printed a notable price decline, but the current session has responded with an upside rebound.
The MACD bars have taken an upward trajectory from below the equilibrium level. The last bar of the indicator now appears solid green, suggesting that upside forces are still ready to propel the market upwards. Traders can anticipate that price action will rise above more EMA lines, as this will provide more impetus toward the 1.3700 resistance level.
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