USD/CAD Price Recap
USD/CAD is down 36 pips (0.27%) since yesterday (with its current price near 1.32496), marking the 2nd day in a row it has gone down. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 2.91% from the day before — and down 34.35% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CAD ranked 29th yesterday in terms of percentage price change. Below is a price chart of USD/CAD.
USD/CAD Technical Analysis
Coming into today 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 200 day average, which is 26.2 pips away. It should be noted, though, the 50 and 100 day simple moving averages turned downwards, which may be a bearish sign. Related to the moving average crossover is that USD/CAD’s momentum/trend on a 14 day basis may be decelerating. Volatility for USD/CAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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. Or to simplify this another way, note that out of the past 14 days USD/CAD’s price has gone up 10 them.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on USDCAD, with 7 buy signals on our radar and 27 sell signals. This imputes a buy/sell ratio of 0.26, 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 tradingview.com; below is a short snippet from it to give you a taste.
Wait RSI 50 and take frofit.Hard level 0.786. I think, that we cant break it.