USD/CAD Remains Bearish as Long as it Stays Below the 20 SMA
Skerdian Meta • 1 min read
The Canadian Dollar turned bullish two weeks ago when the Canadian employment report came in much stronger than expected. USD/CAD turned bearish as a result and lost around 270 pips from top to bottom. The recent weakness in the USD also helped.
Moving averages have helped push the price lower. If you switch to the H1 chart, you can see that the 50 and the 100 SMAs were providing resistance on pullbacks higher, pushing this pair lower. On the H4 time-frame, we have the 20 SMA doing that job.
USD/CAD found resistance at this moving average twice last week when buyers tried to reverse the price higher. The 20 SMA reversed this pair lower again yesterday as well. Today, the price has retraced higher once again, but the 20 SMA is not letting go. The climb stopped at the 20 SMA and is reversing back down now. So, USD/CAD is bearish as long as it stays below this moving average on the H4 chart.