USDCAD Up 2 Pips Over Past Hour, Moves Up For the 2nd Straight Day; Breaks Above 50 Day Average

Hourly Update

(Last Updated September 23, 2020 0:12 GMT)

Currently, USDCAD’s rate is up 2 pips (0.02%) from the hour prior. This is the 2nd consecutive hour USDCAD has seen its price head up. Regarding the trend, note that the strongest trend exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

USDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

USDCAD is up 108 pips (0.82%) since yesterday (opening today near 1.3306), marking the 2nd straight day an increase has occurred. Out of the 40 instruments in the Forex asset class, USDCAD ended up ranking 8th for the day in terms of price change. Below is a price chart of USDCAD.

USDCAD

USDCAD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: USDCAD crossed above its 50 day moving average yesterday. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 14 day timeframe. For additional context, note that price has gone down 18 out of the past 30 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on USDCAD, with 14 buy signals on our radar and 20 sell signals. This imputes a buy/sell ratio of 0.7, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a harmonic technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The 20 and 50 EMA’s are already giving a uptrend signal, but 200 and 50 EMA’s are about to cross, if the price remains above 1.32400….The cross of 50 and 200 EMA would give a us a bullish signal called golden cross, that would mean, to go with the trend in this pair, you should long it….By looking at few time frames, it looks like USDCAD will go and retest 1.32400 or uptrend, and then go for a test of key resistance level 1.34320.


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