USDCAD Rebounds to Tackle the Resistance Level at 1.3716

Price action in the USDCAD market seems to have rebounded from the support level at 1.3682, and is now facing the 1.3716 price resistance level. Observations from technical indicators are fairly predicting that upside momentum is building up in this market. However, there is a need for traders to closely study these signs to come up with the right strategy at this point.

Major Price Levels:
Top Levels: 1.3702, 1.3752, and 1.3800
Floor Levels: 1.3680, 1.3640, and 1.3600

USDCAD Prepares to Retest the Resistance at 1.3716

USDCAD tested the price resistance level at the 1.3716 price level about five trading sessions ago. However, price action lacked the momentum to rise significantly above this level. Nevertheless, on the USDCAD daily market, price action is preparing to revisit this resistance level once more. Price activity remains above the 21-day Exponential Moving Average (EMA) curve. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator lines are now moving sideways following a bullish crossover. Also, the Relative Strength Index (RSI) curves are now about to make an upside crossover. Indications coming from the EMA, the Stochastic RSI, and the MACD indicator show that price action may gather more upside traction, which will result in USDCAD’s price rising above the 1.3716 resistance.

USDCAD Price Movements Show Weak Upside Promises

Although USDCAD price action is showing signs that prices may surmount the 1.3716 resistance, these signs appear rather weak on the 4 hour market. The MACD indicator curves are above 0.00, but not very far above it. Also, the bars of this indicator are now pale green, which suggests that even the little strength that there is in this market is growing weaker. Nevertheless, the RSI indicator seems to differ from the opinion of the MACD indicator. The terminals of this indicator are pointing upward, above the 70 level of the indicator, and this implies that upside momentum may increase further. Traders can approach this market by placing an entry at 1.3750 to catch any significant uptrend if one develops.

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