Baxia Markets
May 28, 2021

USDCAD Chases Support

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From this Heikin-Ashi candle 4-hour chart, we can see that the price had been through a long downward trend, which had lasted for almost one month. This is a comparatively steady and long trend, there was neither a steeper angle nor a crazy jump, however, it is slowing down. As can be seen, recently, the price started to fluctuate and hover around 1.207 and stopped going down.


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The Fibonacci retracement is built based on the last downward period. From the Fibonacci lines, we can see that the price is touching the 23.6% Fibonacci level, a potential resistance level. We should pay attention that it may not be able to go higher. Also, the MFI has been at a high level for a while, since the price started to fluctuate. This could mean that this is the highest the price can go for now, there is no bullish strength to push it higher. 


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