USD/CAD Price Analysis: Stuck between a rock and a hard place

USD/CAD 4-hour chart

USD/CAD has been moving lower for a while and now on this timeframe you can see some hesitation. This probably because there is the FOMC meeting on Wednesday. Markets often go through a consolidation period leading into big events. The Fed has spoken about the need for fiscal stimulus and it just does not look like it's coming anytime soon. The question is will the bank get fed up and do their own additional stimulus once again.

Looking at the chart, the price has bounced off the red support level at 1.3135 once again. Now the bulls will be eyeing the previous wave high at 1.3259 to get the trend changing back to the upside. 

This is still a downtrend and this current move could be just a retracement but the market seems to be waiting for the next paradigm shift before deciding. There are lots of upcoming catalysts, the US election, Fed policy and even the COVID-19 vaccine could important.

The indicators are currently turning bullish. The MACD histogram bars are red but diminishing in size. The signal lines are above the mid-level which is positive and the Relative Strength Index has crossed the 50 point to the upside. 

Tomorrow evening will be very important when looking to forecast the future trajectory of the pair and a break of these level mentioned in the chart can help control risk and even help trigger positions. 

Additional levels