USD/CAD Retrace Down Is Complete
Skerdian Meta • 1 min read
The USD/CAD has been moving higher in the last two months, following a steep uptrend. During this period, the USD/CAD earned about 9 cents, which is quite impressive. The CAD has been getting hit hard by the taxes that Trump imposed and Canada has a vast sector of commodities and raw materials, hence the strong climb in this pair.
It broke above 1.30 last Thursday and managed to break above 1.31 today. In the last several hours, this pair has been retracing lower, long overdue and took place today as this forex pair slipped 80 PIPs lower.
The pullback is over and the uptrend is resuming again
At the moment, it seems the retrace is over. The stochastic indicator and H1 chart have become oversold. Stochastic is reversing higher now and the reverse is already underway.
The strongest bullish indicator is the 50 SMA (yellow). This moving average was pierced today and the hourly candlestick didn’t close. The price pulled back up, meaning this moving average remains valid as support.
The pullback in the USD seems to have ended as well. The commodity Dollars have lost the excitement of the last few hours and they are all reversing now. We have three live forex signals, one short on the AUD/USD, similar to a buy signal in the USD/CAD. You can use this trade idea if it suits your money management rules.