USD/CAD Approaching Moving Averages – Get Ready To Sell
Yesterday, in our US session summary, we briefly mentioned that the Canadian Dollar has been trading in a relentless uptrend.
A few weeks ago I thought that this uptrend was coming to an end or that a bottom might have been put in place at least. However, the BOC (Bank of Canada) hiked the interest rates for the first time is a very long time, giving the CAD another boost.
Since then, the downtrend in USD/CAD has developed in a very regular manner, with the 50 (yellow) and 100 (green) moving averages giving the price another push lower whenever the price got close.
There are 2 levels where we can sell this pair
This morning, we´re seeing this forex pair make another retrace up. The price is getting close to the 50 SMA and stochastic is pointing higher, but there´s still some room to run until we reach the top.
This is a straightforward trade actually; just sell when we get close to the two moving averages. Just to be safe, we´ll wait for stochastic to become overbought and then open a sell forex signal in USD/CAD.
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