The Jump Off the 100 SMA Confirms the Bullish Reversal in USD/CAD - Forex News by FX Leaders
The retrace is now complete on the H4 chart

The Jump Off the 100 SMA Confirms the Bullish Reversal in USD/CAD

Posted Thursday, January 23, 2020 by
Skerdian Meta • 1 min read

USD/CAD turned quite bearish in December, after OPEC+ decided to cut production again and place quotas for an additional 50k barrels/day. Crude Oil turned bullish after that and so did the CAD, sending USD/CAD diving lower all month, losing more than 400 pips.

But, the sentiment improved this month and crude Oil turned bearish. On the other hand, the USD ended the retracing period and has turned bullish, sending this pair higher from below 1.30. USD/CAD broke above the 50 SMA (yellow) and the 100 SMA (green), although it has been consolidating between 1.30 and 1.31 in more than a week.

The 50 SMA turned into support first on the H4 chart at first, then today the 100 SMA took over that job, after the 50  SMA was broken. Now, USD/CAD has turned even more bullish, after the statement from the Bank of Canada was sort of dovish. The price has moved above the 200 SMA (purple) as well now. A retrace at the 200 SMA would be a good opportunity to buy now, since that’s the top of the previous range as well.

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