The Downtrend Continues in USD/CAD, as MAs Keep Pushing it Down
The USD/CAD has turned quite bearish since March, retreating from 1.4660s and losing more than 17 cents from the top. The decline was quite straightforward until the end of August, with moving averages providing resistance and keeping this pair subdued on the daily chart.
In September, we saw a decent fight from buyers, pushing the price up to 1.34. That retrace was repeated in October as well, but the downtrend resumed again at the beginning of November, after the US elections. Since then, the downtrend has picked up pace again, especially in the last couple of weeks.
If we switch to the H1 chart, we see that moving averages have done a great job in providing resistance and pushing the price lower. Retraces higher have been very weak, as we saw earlier today when the USD/CAD climbed around 35 pips higher, before reversing back down at the 50 SMA on the H1 chart, after forming a doji candlestick, which is a bearish reversing signal. We missed that opportunity, but will try to go short on this pair when we see another retrace higher to the 50 SMA.
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