USD/CAD May Rebound at 1.38221

Market Analysis – January 21

The USD/CAD market is currently experiencing heightened volatility. Price moved sharply from around the 1.36700 level to above 1.39000, reflecting strong bullish momentum. However, the rally encountered resistance above 1.39000, and after a period of struggle between demand and supply at this level, the price began to correct lower as traders took profits.
As the market pulled back, bullish interest appears to be gathering around the 1.38240 level. This behavior suggests that buyers may be preparing for another attempt to push the market higher.

USD/CAD Key Levels

Supply Levels: 1.39000 , 1.39300, 1.39600
Demand Levels: 1.38000, 1.37700, 1.37500

USD/CAD Daily Outlook

The candlestick representing today’s trading session features a substantial real body accompanied by a long lower shadow. This is a bullish signal, as it illustrates the strength with which buyers pushed price higher from around the 1.38000 level and their determination to reclaim upward momentum.
However, it is important to note that the wide Bollinger Bands indicate elevated market volatility. Under such conditions, price can move sharply in either direction. Traders should therefore closely monitor price developments around this level and make informed trading decisions accordingly.

USD/CAD Short-Term Trend

The Bollinger Bands indicator shows the lower band reacting to the recent surge in selling pressure. Despite this, buyers are beginning to push back, signaling a potential shift in momentum. As a result, the expanded lower band can be interpreted as a sign that price may attempt a rebound from the 1.38000 area.
However, given the current high level of market volatility, traders are advised to wait for clearer signs of stabilization before considering long positions.

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