The USDCAD under the negative pressure – Analysis - 04-10-2021

The USDCAD pair found solid resistance at 1.2720 and couldn’t breach it, to trade with strong negativity and approaches 1.2600 support barrier, which makes us prefer to stay aside temporarily until we get clearer signal for the next trend, which we will get through surpassing on of the mentioned levels.

The contradiction between stochastic positivity and the EMA50 negativity provides another reason for neutrality, noting that breaking the mentioned support will press on the price to achieve more decline and head towards 1.2495 as a next negative station, while breaching the resistance will lead the price to regain the bullish track and head towards 1.2840 on the near term basis.

The expected trading range for today is between 1.2560 support and 1.2700 resistance.

The expected trend for today: Neutral