USDCAD had previously extended the downward correction observed during the prior week into Monday’s trading session. However, yesterday’s trading revealed a sharp upward correction. The current session continues to hold promise for bullish traders, as the market is poised for further price increases.
Key Price Levels:
Resistance Levels: 1.3799, 1.3850, and 1.3900
Support Levels: 1.3750, 1.3700, and 1.3650
USDCAD Nearing a Breakthrough of the 1.3820 Price Level
The USDCAD pair appears to have found support at the 1.3730 level, which is a newly established base level. Previous trading within the 1.3730–1.3800 region struggled to find support. At this point, the latest price candle on the chart has a higher likelihood of breaking through the resistance at the 1.3800 price ceiling.
This opinion is reinforced by the fact that the pair is trading above two sets of Guppy Multiple Moving Average lines. Furthermore, the recent upside crossover of the Relative Strength Index (RSI) indicator lines suggests that price action is likely to penetrate the aforementioned resistance.
USDCAD Traders Maintain a Strong Bullish Stance
In the 4-hour USDCAD market, it is evident that buyers continue to build substantial bullish momentum. The most recent price candle on this chart has a minimal upper shadow, while the lower shadow is quite pronounced, indicating the dominance of buyers.
Furthermore, trading activity remains above the Guppy Multiple Moving Average (GMMA) lines. Additionally, the RSI curves are steadily rising into the overbought zone of the indicator. Consequently, traders are likely to continue accumulating profits toward the 1.3850 mark.
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