The Downtrend Continues in USD/CAD, as MAs Keep Pushing it Down - Forex News by FX Leaders
The retrace higher is over now

The Downtrend Continues in USD/CAD, as MAs Keep Pushing it Down

Posted Thursday, December 3, 2020 by
Skerdian Meta • 1 min read

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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About the author

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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