USD/CAD Up 21 Pips Over Past 4 Hours, Came Into Today Down For the 4th Day In A Row; Doji Pattern Appearing on Chart

USD/CAD 4 Hour Price Update

Updated August 06, 2020 09:07 AM GMT (05:07 AM EST)

After 3 down four-hour candles, USD/CAD snaps its streak, rising 21 pips (0.16%) over the past four-hour candle to close at an exchange rate of 1.3286. Out of the 37 instruments in the Forex asset class, USD/CAD ended up ranking 13th for the four-hour candle in terms of price change.

USD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/CAD is down 4 pips (0.03%) since the previous day (opening today near 1.32619), marking the 4th day in a row a decrease has occurred. Out of the 40 instruments in the Forex asset class, USD/CAD ended up ranking 35th for the day in terms of price change. Below is a price chart of USD/CAD.

USD/CAD

USD/CAD Technical Analysis

Coming into today USD/CAD is now close to its 20, 50 and 200 day averages, located at 1.3422, 1.3519 and 1.3585 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 159.8 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 7 out of the past 10 days. Also, candlestick traders! Note we see doji pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 23 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 1.35, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

An oversold reading in Relative Strength Index (RSI) is likely to be accompanied by a further depreciation in USD/CAD like the behavior seen in June.