The sentiment surrounding the US dollar seems quite healthy, and this has been helpful in pushing price action in the USDCAD market further upwards. Technical indicators still suggest that the bullish sentiment surrounding the pair may persist for a bit longer. Let’s take a closer look at things and see.
Key Price Levels:
Resistance Levels: 1.3356, 1.3400, and 1.3500
Support Levels: 1.3300, 1.3200, and 1.3100
USDCAD Bulls Are Holding a Key Position
Today’s trading session began with only mild bullish hope. However, sentiments from the US dollar side of the market seem to have assisted the USDCAD pair in gathering more traction. Earlier, the pair’s price had been above the 1.3400 resistance, but contraction forced prices back towards the bear side of the market.
Nevertheless, buyers are still holding their ground above the middle band of the Bollinger Bands. Despite the price contractions, it can be seen that the Stochastic Relative Strength Index lines on the daily chart are still on an upward path. This suggests that price activity in this market still has an upward trajectory.
USDCAD Faces Minimal Rejection but Stays in the Reach of Headwinds
While USDCAD’s price action has been hugging the uppermost band of the Bollinger Bands, a tiny red price candle has appeared for the ongoing session. This signifies that downward forces are staging a rejection at this point. However, the rejection seems quite minimal and weak at this juncture. Likewise, trading activities in this market continue at a significant distance off the middle limit of the Bollinger Bands.
In addition, the RSI lines are still slightly projected upwards above the 90 mark of the indicator. At this point, it could be deduced that the upside momentum is challenged, forming resistance to further upside correction. Nevertheless, considering technical indicators, traders can still hold their positions towards the 13400 mark. However, they should keep tabs on fundamentals that may influence sentiments in this market.
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