MAs Still Keeping USD/CAD Bearish

USD/CAD has turned lower again after failing at the 20 SMA earlier today on the H1 chart

The bearish momentum continues for USD/CAD

The USD/CAD has been bearish since March, when it stopped surging higher, following a 15 cent climb. The bearish momentum continued until September 1, pushing this pair below 1.30 for a moment, but the price didn’t stay there too long, before pulling back up.

This pair continued to climb, gaining more than 4 cents from the bottom. This suggested that the larger bearish trend might have come to an end, since the target of 1.30 was reached and exceeded, and the weak stops below that were triggered.

But the retrace ended right at the 100 SMA (green) on the daily chart, and on the last day of September. This pair remains bearish for now, and moving averages are doing a good job of keeping it that way. The 200 SMA (yellow) stopped its climb last week, while the 20 SMA did so earlier today, which we missed. That was a good opportunity to sell this pair, but we will wait for another retrace higher, and probably open a sell forex signal then.

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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