MAs Turn From Resistance Into Support of USD/CAD - Forex News by FX Leaders
The uptrend continues as MAs push higher in USD/CAD

MAs Turn From Resistance Into Support of USD/CAD

Posted Wednesday, August 14, 2019 by
Skerdian Meta • 1 min read

USD/CAD made a bearish reversal and entered a strong bearish trend in June as Oil prices climbed higher, which helped the CAD as a commodity currency closely correlated to crude Oil. the price consolidated for a couple of week above 1.30 in July, so a support zone formed down there.

The price started reversing higher toward the end of July as the climb in crude Oil stopped. USD/CAD was finding resistance at moving averages at it was climbing higher, particularly the 100 simple MA (green) and the 100 smooth MA (red) on the H4 chart.

The price climbed to 1.3340s at the middle of last week, but the 100 SMA on the daily chart provided resistance and reversed this pair lower. Since then, the price has retraced lower but the 100 SMA (red) turned from resistance into support at the beginning of this week.

Yesterday, we saw another attempt at breaking this support indicator, but the 100 smooth MA resisted once again, this time helped by the 100 simple MA. Now these moving averages have turned into good support indicators to go long on USD/CAD when the price retraces lower again.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of