USD/CAD Up 14 Pips Over Past 4 Hours, Eyes 20 and 50 Day Averages; Doji Pattern Appearing on Chart

USD/CAD 4 Hour Price Update

Updated May 25, 2020 09:09 PM GMT (05:09 PM EST)

The back and forth price flow continues for USD/CAD, which started the current 4 hour candle off at 1.3985, up 14 pips 0.1% from the previous 4 hours. Relative to other instruments in the Forex asset class, USD/CAD ranked 2nd the previous 4 hours in terms of percentage price change.

USD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/CAD entered today at 1.40039, down 0 pips (0%) from the day prior. Out of the 40 instruments in the Forex asset class, USD/CAD ended up ranking 26th for the day in terms of price change. Let’s take a look at 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 and 100 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 18.7 pips away. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 16 out of the past 30 days. Also, candlestick traders! Note we see doji pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDCAD, with 27 buy signals on our radar and 21 sell signals. This imputes a buy/sell ratio of 1.29, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

Hello Traders Investors And Community, welcome to this update analysis about the current price action in USDCAD, which formation we are building and what we can expect from the upcoming time and result in further price-movement, there are some important and significant signs which I discovered and making it clearer to me in which direction we will follow through with USDCAD, there is an underlying bullish edge in the price as we are still in a consolidation that can change into a heavy and consequential breakout, therefore we are looking at the locally 4-hour timeframe….At the moment we have a strong support zone between the 1.386 and 1.391 zone which you can see marked in blue in my chart, this support zone USDCAD confirmed several times and is now consisting as an important and strong support level where we highly likely bounce further when touched again….After this was reached we have to elevate and see how USDCAD can continue, although the possibility at the moment is not high that we will get bearish pressure that can change when we confirm below the support but that is not likely because the level is really strong.