USD/CAD has been moving up recently and it marked today the seventh consecutive day of gains today. This forex pair has been trading in a 500 pip range in the last 10 weeks and the 100 smooth moving average in red on the daily chart has been providing resistance on the top side of the range. That moving average was broken on Friday last week.
So, the attention turned to the real resistance level at 1.3160-80 today. But, in the last hour this forex pair made a jump breaking above that resistance level and above 1.32 as well. In the weekly analysis about two weeks ago, we wrote that since this resistance level has topped every move in the last 10 weeks, we might consider opening a long term sell forex signal there, but that scenario is ruined now.
The 50 moving average awaits at 1.3280s
So, what happens now with long term forex signals in this pair? Well, oil prices have been siding with London Brent crude below $45/barrel and WTI (US oil) near $43/barrel, therefore we´ll stay out of this pair for the time being. On the weekly forex chart, the stochastic indicator is near the overbought level though and the price is getting close to the 50 moving average. When the price gets there maybe we will reconsider a long term sell forex signal in this forex pair.
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