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The 100 SMA Is Keeping USD/CAD Subdued

USD/CAD has been bearish since the middle of March, when it reversed down, following a 15 cent surge during the first two weeks of that month, as a result of the coronavirus outbreak. Markets turned into the USD as a global reserve currency, while the CAD tumbled together with Oil.

But, the panic wore off and USD/CAD turned bearish again. This pair has been quite bearish until the middle of last month, when it fell to 1.33. Since then, USD/CAD has been trading sideways inside a range, between 1.35 and 1.37, while the range is narrowing.

Moving averages were providing resistance on the H4 chart during June, but they have all go bundled together now and the price has moved above and below them a few times. But it seems like the 10 SMA (green) has turned into resistance now. We opened a buy forex signal last week, based on the daily chart and USD/CAD reversed higher. But this moving average is stopping it from climbing higher, so we will see who will win this battle between buyers and sellers now.


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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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