USD/CAD Resumes the Long-Term Downtrend
The USD/CAD has benefited from the bullish momentum in crude oil over the past year, since US WTI Crude Oil reversed from all-time lows at $ -37.50 in April 2020. The USD decline has also helped this pair maintain its bearish momentum.
During this time, the USD/CAD has lost more than 20 cents from top to bottom, and it doesn’t seem like the downside is ending anytime soon. Moving averages are helping to keep the pressure on the downside on the daily chart, particularly the 100 SMA (green).
In the last two weeks, we have seen this pair retrace higher, as the USD gained some momentum after the big decline, and the price climbed above the 100 SMA on the daily chart. But the sellers returned, and they have pushed the price 200 pips lower, causing the bearish trend to resume again. So, the buyers are in charge for now, and we will try to sell USD/CAD if we see a retrace higher on the smaller charts.
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