The USDCAD exchange rate has established a support level this week at 1.4000, providing traders with crucial insights into market dynamics. Observations indicate that buyers have shown consistent interest in this area, with trading activity hovering between 1.4000 and 1.4007. This pattern has been evident over the past few days, particularly on Monday, Tuesday, and again today, with prices rebounding off this critical threshold.
Understanding these levels is essential for traders. If the USDCAD maintains its position above 1.4000, it signals that buyers remain active. Conversely, should the price drop below this level, the market sentiment would shift, increasing risk for those holding long positions. Traders can leverage this knowledge to set targets and manage their risk effectively.
Identifying Key Targets Above 1.4000
With 1.4000 serving as a pivotal risk level, traders are now focusing on potential targets. The first significant resistance point is identified at the 50% retracement level of 1.40135. Presently, the price is trading just above this level, which could bolster buyer confidence moving forward.
The next target for upward momentum lies near the high from yesterday, which also coincides with the 38.2% retracement level of the recent upward move that began from the lows recorded at the end of October. As the 100-hour moving average is also approaching this retracement level near 1.40433, it adds another layer of importance for traders looking to capitalize on potential gains.
As long as the risk level at 1.4000 holds, buyers continue to demonstrate their willingness to engage in the market, suggesting that upward targets remain attainable. The interplay of these technical levels offers valuable insights for traders navigating the USDCAD landscape.
