USD/CAD Price Recap
USD/CAD is up 13 pips (0.1%) since yesterday (with its current price near 1.33165), marking the 4th day in a row an increase has occurred. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 8.63% from the day before — and down 7.25% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CAD ranked 13th yesterday in terms of percentage price change. Below is a price chart of USD/CAD.
USD/CAD Technical Analysis
The first thing we should note is that the current price of USD/CAD is sitting close to its 20, 50, 100 and 200 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 200 day average, which is 91.4 pips away. Volatility for USD/CAD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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. For additional context, note that price has gone up 20 out of the past 30 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 11 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 0.79, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
Daily chart shows long-term bullish bias. Looking for price to re-trace into highlighted area. Need price to slow and show signs of rejection prior to taking long position. TP1 set at previous session high, TP2 and 3 at corresponding fib extensions.