USDCAD Down 23 Pips Over Past Hour, Moves Up For the 2nd Straight Day; Crosses 100 Day Moving Average

Hourly Update

(Last Updated July 7, 2021 18:11 GMT)

Currently, USDCAD’s rate is down -23 pips (-0.18%) from the hour prior. This is the 2nd hour in a row USDCAD has seen its price head down. 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 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 up 119 pips (0.96%) since the day prior (opening today near 1.24568), marking the 2nd straight day it has gone up. Relative to other instruments in the Forex asset class, USDCAD ranked 3rd the day prior in terms of percentage price change. Below is a price chart of USDCAD.

USDCAD

USDCAD Technical Analysis

Notably, USDCAD crossed above its 100 day moving average yesterday. 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 100 day average, which is 74.9 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Volatility for USDCAD 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 30 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. For additional context, note that price has gone up 6 out of the past 10 days. Moreover, we’re also seeing a bullish engulfing pattern; this may be especially noteworthy in light of the downtrend on the 30 and 90 day charts, as in this context the bullish engulfing candles may indicate the bear trend may be ending.