USD/CAD Remains Bearish as Long as it Stays Below the 20 SMA - Forex News by FX Leaders
The downtrend continues for this pair

USD/CAD Remains Bearish as Long as it Stays Below the 20 SMA

Posted Wednesday, October 23, 2019 by
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.

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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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