MAs Keep Keeping USD/CAD Bearish
Skerdian Meta • 1 min read
USD/CAD has sliding lower since mid March, after this pair surged around 15 cents higher in a couple of weeks, as traders turned into the US as a global reserve currency. But, the jolly times fort his pair ended back then and since then USD/CAD has only declined.
USD/CAD formed a bottom at 1.3350 at the beginning of June, which lasted for around two months, until the end of July. The increase in crude Oil prices has been helping the CAD, pushing this pair lower, besides the broad weakness in the USD.
Although, we saw USD/CAD pull back higher yesterday, which took the price above 1.33 earlier today. But, it seems like the 50 SMA (yellow) is acting as resistance now. This pair formed a doji below that moving average, which is a reversing signal. The price turned bearish after that and now USD/CAD is trading at the 20 SMA. We missed the chance to sell at the 50 SMA, but might do so on another retrace up there.