The 200 Daily SMA Has Turned Into Support For USD/CAD Again

[[USD/CAD]] surged around 15 cents higher during the first half of March, as panic sent traders piling into the USD, as a global reserve currency. But, the climb ended at 1.47 and the price returned back down. The price consolidated during April, but the decline resumed again by the middle of May.

This forex pair fell to 1.33 by the middle of June, breaking below all moving averages, but it climbed above the 200 SMA (grey) by the middle of last month and it has been trading above this moving average since then. The 100 SMA (green) has turned into support on the top side for USD/CAD now.

So it seems that this pair is stuck between these two moving averages now. Yesterday we saw USD/CAD turn bearish after the meeting from the Bank of Canada and after Tuesday’s doji candlestick on the daily chart, which is a reversing signal. But, the 200 SMA held as support once again. We went long on USD/CAD, so we hope to see a bounce from here now.

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.

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