USDCAD Down 6 Pips Over Past Hour, Moves Down For the 2nd Consecutive Day; is Inching Close to 20 Day Average

Hourly Update

(Last Updated September 18, 2020 23:12 GMT)

At the time of this writing, USDCAD’s rate is down -6 pips (-0.05%) from the hour prior. USDCAD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

USDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDCAD is down 11 pips (0.08%) since the previous day (opening today near 1.31644), marking the 2nd consecutive day it has gone down. Compared to its peers in the Forex, USDCAD gave its buyers a return that ranked 29th in terms of percentage change since the previous day. Let’s take a look at price chart of USDCAD.

USDCAD

USDCAD Technical Analysis

The first thing we should note is that USDCAD is now close to its 20 and 50 day moving averages, which may act as price barrier for the asset. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 90 and 30 day timeframes. Or to simplify this another way, note that out of the past 14 days USDCAD’s price has gone up 7 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 12 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 1.2, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

USDCAD BROKE THE ASCENDING TRENDLINE ON WEEKLY CHART SO I WILL WAIT FOR THE BREAK OUT ON SUPPORT ON SMALL TIMEFRAME


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram