Bear Tension Increases as the USDCAD Market Continues to Trade Downward

Updated:

USDCAD Price Analysis – January 5

Bear tension increases as the USDCAD market continues to sell in a downtrend zone. The bull’s progress suddenly elapsed, and this allowed the sellers to push forward market value in a downtrend movement to follow the sellers’ orientation. The seller’s prospect is expected to move downward in the long run, breaking several zones along the way. This will eventually happen as the tension created by the bear’s advances increases.


USDCAD Zones

Resistance Zones: 1.28310, 1.26210
Support Zones: 1.24920, 1.23010

Bear Tension IncreasesUSDCAD Long Term Trend: Bearish

The first result of this bearish manipulation came from a price decline below the 1.23010 support zone. The two prospects then took a while before allowing the bulls to take the price upward. The bulls lifted the price upward following a cup formation. The bulls, however, picked up an uptrend as several support and resistance zones were also broken. The market proceeded to gallop upward as the trend line was being retested. The bulls exhausted their tension as the price of USDCAD galloped to the 1.28310 level of significance.

After the price reaction is stirred by the buyers, the market continues to dip downward. The price level first successfully breaks through the trend chain. Bears’ preparation allows price movement to follow the market seller’s direction. The sellers allowed the price to get down to the 1.23010 zone before USDCAD faced another upfront by the buyers again. They also apply their pressure by holding price action till the market travels back to the 1.28310 zone and retests the trend channel. The bearish momentum is now visible as they plan on increasing their tension to drive the price downward.

Bear Tension Increases USDCAD Short Term Trend: Bearish

USDCAD in the 4hour depicts the struggle between the two powerful holders in the market. The bears are significantly in control of price movement as they experience a downfall. The momentum indicator follows the bearish speed in the market, and the moving average gives a cross that sets a price to ride downward. It is therefore anticipated to break through the 1.26210 significant level.

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Azeez Mustapha

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.