(Last Updated September 7, 2020 15:12 GMT)
Currently, USDCAD’s rate is down -5 pips (-0.04%) from the hour prior. USDCAD has seen its price go down 4 out of the past 5 hours, thus creating some compelling opportunities for bears. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on USDCAD. Given that we see an uptrend on the 5 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. With that said, traders should also note the downtrend on the 20 hourly candle timeframe, so the meaning of the candles may require further exploration. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 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)
The back and forth price flow continues for USDCAD, which started today off at 1.3059, down 67 pips 0.51% from yesterday. Compared to its peers in the Forex, USDCAD gave its buyers a return that ranked 37th in terms of percentage change since yesterday. Below is a price chart of USDCAD.
USDCAD Technical Analysis
The first thing we should note is that the current price of USDCAD is sitting close to its 20 and 50 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 20 day average, which is 111.2 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days USDCAD’s price has gone down 10 them.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on USDCAD, with 20 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 1.11, which is neutral. As for the rationale, technical traders seem to be citing the appearance of channel, fibonacci, harmonic and relative strength index technical patterns. Here’s a piece we found on dailyfx.com; below is a short snippet from it to give you a taste.
USD/CAD may continue to consolidate ahead of the Bank of Canada (BoC) interest rate decision on September 9 as the RSI bounces back from oversold territory.