Getting Ready to Buy USD/CAD Again as the 50 SMA Approaches
USD/CAD has reversed lower today, but the support zone at 1.33 is holding and the 50 SMA is approaching.
[[USD/CAD]] has offered three great trading opportunities this week. This pair has been trading in a range and it has formed a strong support area below 1.33. Yesterday, we opened a buy forex signal on this pair just above 1.33 and booked profit as it bounced higher off the 100 SMA on the H1 chart.
Today, the situation is repeating again. The price has turned bearish during the Asian session and so far in the European session. The rumours regarding a possible trade deal between US and China, even though it might be partial, have improved the risk sentiment in financial markets and Commodity Dollars have been gaining.
As a result, USD/CAD has declined, but it is back at this support zone now. Sellers are having difficulty pushing lower now, judging by the price action. So, the support zone is working still.
Besides that, the 50 SMA (yellow) is approaching and stands a few pips below 1.33. This moving average should add some more strength to the support zone, so we are getting ready to go long again on USD/CAD.
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