Is the Trend Changing in USD/CAD, Aa MAs Turn From Resistance to Support?

USD/CAD found support at the 200 SMA again today on the H4 chart

Skerdian Meta•Wednesday, February 3, 2021•1 min read

[[USD/CAD]] has been on a strong bearish trend since March last year, when the USD started to turn bearish. This pair around 21 cents from top to bottom, helped by the strong bullish trend in crude Oil as well since April 2020.

Moving averages have been doing a great job providing resistance during retraces higher. The smaller ones such as the 50 SMA (yellow) did so when the trend was stronger, while the larger ones such as the 200 SMA (purple) provided resistance when the trend was slower and retraces stronger.

Although, the trend might be changing now, with the price moving above the moving averages. The 200 SMA was finally broken properly in the last week of January and it turned into support right away. Overnight today traders retested that moving average a couple of times, but they failed and the price is bouncing back up. So, this might as well be a trend reversal, but USD/CAD will have to move above 1.30 for confirmation.

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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.