USD/CAD Price Recap
A moment of silence, please, for the end of USD/CAD’s 3 day down streak; price ended yesterday up 18 pips (0.13%) to finish the day at a rate of rate of 1.32672. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 24.43% from the day prior, but down 4.53% from the same day the week before. Out of the 40 instruments in the Forex asset class, USD/CAD ended up ranking 14th for the day in terms of day-over-day price change. Let’s take a look at price chart of USD/CAD.
USD/CAD Technical Analysis
Notably, 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 44.8 pips away. It should be noted, though, the 100 day simple moving average turned upwards, which may be a bullish sign. Volatility for USD/CAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 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 20 them. Also, candlestick traders! Note we see doji pattern appearing here as well.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on USDCAD, with 4 buy signals on our radar and 33 sell signals. This imputes a buy/sell ratio of 0.12, which is quite bearish. 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.
Bear Flag , Projection of 1.3175 or better on breakout