Booking Profit on USD/CAD Sell Signal

USD/CAD retraced higher today, but the 50 SMA stopped the climb

Skerdian Meta•Wednesday, June 3, 2020•1 min read

[[USD/CAD]] has turned quite bearish in the recent weeks. This pair surged 15 cents to 1.47 in March as Oil declined, but the climb stopped despite Crude Oil continuing to fall into negative territory. So, USD/CAD started reversing down in April and since then, the pressure has been totally to the downside.

Although, during the last two months, USD/CAD formed a base at 1.3850, even though the highs kept getting lower, which was another sign of the selling pressure. Then came the break in the last week of May, which finally took out the support zone at 1.3850s, as Oil turned bearish.

As a result, this forex pair fell to 1.3480s and moving averages were doing a good job in pushing this pair down on the H1 chart. Yesterday, it was the 20 SMA (grey) which was providing resistance for USD/CAD, but that moving average was broken today, as crude Oil retraced lower. But, the 50 SMA (yellow) took its place, providing resistance and reversing the price back down. We decided to go short below the 50 SMA, and now we have booked profit on that forex signal, after the decline.

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

ABOUT THE AUTHOR See More

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.