USD/CAD Up 151 Pips, in an Uptrend Over Past 14 Days; Sentiment Strongly Favors Sellers

USD/CAD Price Recap

USD/CAD is up 151 pips (1.09%) since yesterday (with its current price near 1.39242), marking the 6th day in a row it has gone up. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 36.32% from the day prior, and up 34.59% from the same day the week before. Relative to other instruments in the Forex asset class, USD/CAD ranked 12th yesterday in terms of percentage price change. Let’s take a look at price chart of USD/CAD.

USD/CAD Technical Analysis

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 516.1 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 30 days USD/CAD’s price has gone up 19 them.

A final note on correlations: over the past 7 days, USD/MXN has been the pair most correlated with USD/CAD — a common occurrence, given the presence of USD in both currency pairs. Alternatively, regarding pairs with the lowest correlation to USD/CAD? Well, EUR/USD is the pair that holds that distinction for the past week, while USD/CNH does on a two week basis.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDCAD, with 3 buy signals on our radar and 33 sell signals. This imputes a buy/sell ratio of 0.09, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Traders, USDCAD has entered the short position zone now with good Fibonacci confluence. Be careful and wait for a confirmation on 4H or daily time frame before entering the short position.