USD/CAD Up 5 Pips Over Past 4 Hours, Sentiment Strongly Favors Buyers; Doji Pattern Appearing on Chart

USD/CAD 4 Hour Price Update

Updated August 03, 2020 05:10 AM GMT (01:10 AM EST)

The choppiness in the recent four-hour candle price action of USD/CAD continues; to start the current 4 hour candle, it came in at a price of 1.3405, up 5 pips (0.04%) since the last 4 hour candle. Relative to other instruments in the Forex asset class, USD/CAD ranked 12th 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 1.34107, up 5 pips (0.03%) from the previous day. Relative to other instruments in the Forex asset class, USD/CAD ranked 16th the previous day in terms of percentage price change. The price chart of USD/CAD below illustrates.

USD/CAD

USD/CAD Technical Analysis

Notably, USD/CAD is now close to its 20, 50, 100 and 200 day averages, located at 1.348, 1.3527, 1.3742 and 1.3582 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 69.4 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 down. For additional context, note that price has gone up 7 out of the past 14 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing doji pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 31 buy signals on our radar and 2 sell signals. This imputes a buy/sell ratio of 15.5, which is very bullish. As for the rationale, technical traders seem to be citing the appearance of a flag technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

I see a couple reasons for this long, firstly: OIL….-I called this trade is my private group last week, my entry is shown here….-Bullish flag-Gorgeous long lower wicks on the last 8 hours of trading.