No Rest for USD/CAD, As the 20 SMA Keeps Pushing It Down
Skerdian Meta • 1 min read
USD/CAD has been really bearish since march, when the surge in the USD from the initial coronavirus panic ended. The USD has been quite bearish since then, while the CAD has benefited form the increase in WTI crude Oil prices, which have increased more than $ 80 since the middle of April.
The combination of these factors have kept this pair bearish since March, which has picked up further pace, particularly in November, after the retrace higher to 1.34 in late October. Moving averages have been doing a good job in providing resistance for USD/CAD on the H4 chart.
The 100 SMA (green) was doing a good job earlier, while in the last few weeks the 20 SMA (grey) has taken over as resistance for this pair. Yesterday we saw a small retrace higher on this chart, which we sold, but the pullback ended at the 20 SMA once again and after an upside-down pin candlestick which is a bearish reversing signal, the bearish trend resumed. So, this moving average looks like a good place to sell USD/CAD and we will try to pick another trade on another retrace higher.