USDCAD plummets from its uptrend direction after it fails to violate the 1.28300 resistance level. The market recently survived a scare when it dropped slightly from its uptrend line under pressure from 1.26500. But price did well to recover above the price level and then used it as a springboard to climb higher. However, the market’s climbing power has been repressed at 1.28300, to which price plummets.
USDCAD Key Levels
Resistance Levels: 1.24700, 1.26500, 1.28300
Support Levels: 1.20300, 1.21500, 1.23000
USDCAD Long Term Trend: Bearish
USDCAD began its uptrend at the 1.20300 level and it has been moving steadily upward, breaking through several significant levels. Bearish pressure gradually increased as the market climbed higher. This was evident when price dropped below the trendline on the 2nd of September, but the market quickly recovered before the bears started working on it. However, after hitting 1.28300 on the 20th of September, the market has increasingly weakened.
USDCAD, therefore, fails to get past the 1.28300 key level as the price plummets to 1.24700. The Parabolic SAR (Stop and Reverse) indicator confirms that a fall in price commenced after the market was rejected at 1.28300. The dots from the indicator remained above the daily candles till today. The Stochastic Oscillator has its lines plunging from the overbought region to the oversold region. This means that USDCAD has therefore shifted into bearish territory.
USDCAD Short Term Trend: Bearish
On the 4-hour chart, price can be seen reacting around the 1.24700 key level. Bulls are seeking a revival as price plummets. The Parabolic SAR indicator remains above the market on the 4-hours chart, while the Stochastic Oscillator lines have fallen back to the oversold region after a brief reprisal.
Bears remain in control of the market as USDCAD is approaching 1.23000.