USD/CAD Price Recap
The choppiness in the recent daily price action of USD/CAD continues; to start today, it comes in at a price of 1.32597 US dollars, up 25 pips (0.19%) since yesterday. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 91.34% from the day prior, but down 25.44% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CAD ranked 13th yesterday in terms of percentage price change. The price chart of USD/CAD below illustrates.
USD/CAD Technical Analysis
Notably, the current price of USD/CAD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 25.4 pips away. It should be noted, though, the 100 day simple moving average turned upwards, which may be a bullish sign. Volatility for USD/CAD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 19 out of the past 30 days.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on USDCAD, with 12 buy signals on our radar and 24 sell signals. This imputes a buy/sell ratio of 0.5, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.
USD/CAD may continue to give back the advance from the start of the year as the Relative Strength Index (RSI) offers a bearish signal.