USD/CAD Down 19 Pips, in an Uptrend Over Past 30 Days; Price Base in Formation Over Past 14 Days

USD/CAD Price Recap

USD/CAD, currently priced near 1.32479, is down 19 pips 0.15% since yesterday, marking a reversal from the day prior — and the end of a 4 day positive run. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 31.63% from the day before — and down 41.41% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CAD ranked 32nd yesterday in terms of percentage price change. Here is a price chart of USD/CAD.

USD/CAD Technical Analysis

Notably, USD/CAD is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 26.6 pips away. It should be noted, though, the 100 day simple moving average turned downwards, which may be a bearish sign. 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. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 6 out of the past 10 days.

A final note on correlations: over the past 7 days, the currency pair bearing the strongest correlation to USD/CAD has been CAD/JPY — not terribly surprising, given that CAD is in both currency pairs. On the flip side, in terms of pairs with the least correlation to USD/CAD, look no further than AUD/CHF if you’re focused on just this past week, or AUD/JPY for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 2 buy signals on our radar and 35 sell signals. This imputes a buy/sell ratio of 0.06, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of double top and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

USDCAD: Pot. Triangle – SELL on the break for 55 pips potentialThank you for your likes and support!Good luck!