USD/CAD has been on a bearish trend since March last year and we have done our best to benefit from this decline, selling the retraces up against moving averages. The USD weakness has been helping the USD, while bullish momentum in Oil has also pushed CAD higher.

As a result, the downtrend has been quite strong with USD/CAD losing more than 26 cents from top to bottom. Earlier this week we decided to open a  sell forex signal against the 50 SMA (yellow) on the h4 chart, but buyers decided to push higher to the 100 SMA (green).

USD/CAD Live Chart

This moving average held well as resistance and the price eventually reversed down from there. Now we are seeing another retrace higher today and the price is right below the 100 SMA, with this moving average rejected the price in the first attempt a while ago. So, we decided to open another sell forex signal below the 100 SMA, since crude Oil prices keep marching higher, climbing above $67.