USD/CAD Still Trading Between MAs, Showing Uncertainty
Skerdian Meta • 1 min read
USD/CAD turned massively bearish since March 19 after the surge in the previous week due to the coronavirus panic. This pair lost lost nearly 17 cents and for a moment the price pierced below 1.30. But it pulled back up pretty fast and no candlestick closed below it, so it doesn’t count as a break.
Crude Oil was helping as well during the decline, as it kept climbing higher, pushing the CAD up as well. Moving averages were doing a good job providing resistance during pullbacks on the H4 chart, particularly the 100 SMA (green) and they still continue to provide resistance, this time the 200 SMA (grey) has taken over.
The 200 SMA rejected the price in the first attempt after forming a few doji/pin candlesticks which are reversing signals. But the 100 SMA has turned into support now for this pair. Now USD/CAD is trading between 1.3250 a the top and the 100 SMA at the bottom, which comes above 1.31. So we will be trying to trade this range now, buying at the bottom and selling at the top.