Ready to Go Short on USD/CAD? - Forex News by FX Leaders
Waiting for the price to reach the 10 SMA so we can sell this pair

Ready to Go Short on USD/CAD?

Posted Thursday, July 18, 2019 by
Skerdian Meta • 1 min read

USD/CAD has been on a strong bearish trend during June as crude Oil prices turned bullish, climbing around $10. Geopolitical tensions between Iran and the US helped Oil prices move higher which in return, help the CAD as a commodity currency, hence the decline in USD/CAD last month.

This month, the trend has slowed as Oil prices fail to hold on above the $60 level, but the trend continues to be bearish in USD/CAD . It has surely slowed and the 50 SMA (yellow) has been broken on the H4 time-frame, but the 100 SMA (green) has been holding on, providing resistance for this pair.

We opened a sell signal at this moving average earlier this week which closed in profit as this pair reversed from the 100 SMA. Now the price is heading for this moving average again which now stands at 1.3080s  and I am getting ready to enter again on the short side. The H1 chart is already really overbought and the H4 time-frame chart is becoming overbought, so a reversal is expected soon, but i will wait for the price to reach the 100 SMA first.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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