The Downtrend Should Resume for USD/CAD, As the 20 SMA Catches Up
Skerdian Meta • 1 min read
USD/CAD reversed higher in September, after being bearish for several months, losing more than 16 cents form the top, until it dipped below 1.30. But the price didn’t stay below that big round level for too long and it reversed back up, climbing above 1.34.
Although, the climb ended and the price returned back down, which killed hopes of a bullish trend reversal. The price slipped below the moving averages on the H4 chart and the 50 SMA (yellow) turned into resistance after that, reversing the price down again after a small retrace higher.
USD/CAD fell just a couple of pips below 1.31 yesterday, but the retrace ended at the 20 SMA (grey) on the H4 time-frame for this pair yesterday. We opened a sell forex signal yesterday, hoping that the bearish trend will resume again soon. Today, buyers tried that moving average again, but they failed for the second time, so the upside seems protected in this pair.