USDCAD Down 20 Pips in Last Hour, in a Downtrend Over Past 90 Days; Eyes 20 Day Average

Hourly Update

(Last Updated September 9, 2020 15:12 GMT)

At the time of this writing, USDCAD’s rate is down -20 pips (-0.15%) from the hour prior. USDCAD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. Of note is that the 20 hour changed directions on USDCAD; it is now pointing down. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

USDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for USDCAD, which started today off at 1.30918, up 33 pips 0.25% from yesterday. Relative to other instruments in the Forex asset class, USDCAD ranked 8th yesterday in terms of percentage price change. Let’s take a look at price chart of USDCAD.

USDCAD

USDCAD Technical Analysis

The first thing we should note is that USDCAD is now close to its 20 and 50 day averages, located at 1.3157 and 1.3345 respectively, and thus may be at a key juncture along those timeframes. 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 65.5 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days USDCAD’s price has gone down 7 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDCAD, with 16 buy signals on our radar and 22 sell signals. This imputes a buy/sell ratio of 0.73, 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.

We enter the worker after the baby closing after the channel ends. Otherwise, we do not proceed. SL TP levels are indicated in the graph.Investment information, comments and recommendations contained here are not investment consultancy.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram