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A major demand level at 1.2470 is currently being tested on USDCAD. A lower major demand level at 1.2300 was tested on the 21st of October 2021. The demand level was well protected. The bears struck a second time on the 27th of October. The demand level held, and the attempted breakout was a failure. The Relative Strength Index had indicated that the market had been oversold and was ready to be bought. The bulls gained control and went long. The price soared effortlessly.
The market reached 1.29600. The prominent figure caused difficulty for the bulls and resisted the upward move. The major supply level was tested in the USDCAD market. The bears sank the price to a major demand level at 1.2640. The major demand level failed to hold the price. The market dipped further to the 1.2460 demand level. Finally, the bearish run was halted. The market sprung up to consolidate between the 1.2770 major supply and the 1.2640 major demand levels.
The bullish rally was seized at 1.2870. The Moving Averages period nine signified bearishness on the 16th of March as it changed position. The market has since been very bearish. From March 16th, when there was a break in the structure, to March 25th, there was a total absence of bullish daily candles. The major demand level at 1.2470 is currently being tested on USDCAD. The Stochastic is also showing the market is bearish.
USDCAD Short Term Trend: Bearish
The bears are seeking to drive the price lower. If the major demand level tested on USDCAD fails, the bears will seek 1.2300. The zone was well defended back in January. The bulls might be successful in preventing lower pricing to the 1.2300 level.
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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.
