USDCAD Seems Ready to Retrace Resistance at 1.3560

Recently, the USD has performed poorly. Consequently, this has caused the pair to fall helplessly from above the 1.3700 price level to around the 1.3400 price mark. However, some tailwinds have returned to the USDCAD market. Let’s investigate this move to gain more insight into this market.

Major Price Levels:
Top Levels: 1.3458, 1.3500, and 1.3550
Floor Levels: 1.3418, 1.3400, and 1.3362

USDCAD Rebounds Toward the 38.20 Fibonacci Retracement Level

USDCAD price action has taken off toward an important resistance level. The importance of this price mark stems from the fact that it is above the 9-day Exponential Moving Average (EMA) curve. A significantly larger price candle than the previous one has just appeared on the daily. Likewise, the Stochastic Relative Strength Index (SRSI) indicator lines have also started moving upward after spending some time in the oversold region. Also, the Moving Average Convergence Divergence (MACD) indicator has started revealing that downward forces are starting to grow weaker. This could be seen through the histogram bars of this indicator. Considering the indicator signs here, it appears this pair may be read for at least a moderate upside retracement.

USDCAD Keeps Gathering Upside Momentum

The USDCAD 4-hour market shows that price activity is gathering more upside momentum. Price action has crossed above the EMA line on this chart. The last price candlestick on this chart now sits just on top of the 9-day EMA curve. Meanwhile, the histogram bars on the MACD indicator stay green and are getting taller to suggest a gain in bullish momentum. However, the curves of the SRSI indicator have performed a crossover but stuck to their upside bearing. The activities on the Relative Strength Index seem to point out that the bullish momentum in this market may be stronger than we might be estimating it to be. Therefore, market participants can expect the price to break resistance at 1.3520 at the least.

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