USD/CAD Up 26 Pips On 4 Hour Chart, Eyes 20 and 200 Day Averages; Pin Bar Pattern Appearing on Chart

USD/CAD 4 Hour Price Update

Updated June 24, 2020 01:11 PM GMT (09:11 AM EST)

USD/CAD is up 26 pips (0.19%) since the last 4 hour candle (opening the current 4 hour candle near 1.3587), marking the 3rd candle in a row an upward move has occurred. Relative to other instruments in the Forex asset class, USD/CAD ranked 4th the last 4 hour candle in terms of percentage price change.

USD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USD/CAD entered today at 1.35432, down 6 pips (0.05%) from the previous day. Relative to other instruments in the Forex asset class, USD/CAD ranked 34th the previous day in terms of percentage price change. Here is a price chart of USD/CAD.

USD/CAD Technical Analysis

Coming into today 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 7.9 pips away. 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 90 day horizon; over that time period, price has been moving down. For additional context, note that price has gone up 6 out of the past 10 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 24 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 1.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.

The USD/CAD reversal from the March low (1.3315) may continue to unravel as the RSI fails to break out of the bearish formation carried over from the previous month.