The USDCAD market has been characterized by a battle between buyers and sellers, resulting in volatile price action. Recent observations indicate that swing highs and lows have been easily breached, making it advisable to exercise caution and adopt appropriate risk management strategies until the market conditions become clearer.
On the daily chart, the USDCAD has formed higher lows along a gentle upward-sloping trendline. Conversely, a steep downward-sloping trendline has acted as resistance above the daily candles. The market has been characterized by a stiff trading range, with the price fluctuating continuously between 1.3600 and 1.3400.
Following a rebound from the support level of 1.3400 when the Stochastic indicator signaled oversold conditions, the price managed to break through the resistance trendline. However, the breakout was short-lived as the price retreated into the established range.
USDCAD Short-Term Trend: Bearish
Currently, the price is testing the support level at 1.3400. The Stochastic indicator also indicates an oversold market condition. Therefore, there is a possibility of a bullish reversal towards the anticipated target of 1.3520.
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