USD/CAD Heads Down to the 100 SMA After Being Rejected by the 50 Daily SMA - Forex News by FX Leaders
The decline has resumed again for USD/CAD

USD/CAD Heads Down to the 100 SMA After Being Rejected by the 50 Daily SMA

Posted Thursday, November 24, 2022 by
Skerdian Meta • 1 min read

It was a slow market in European trading today, while the US is off for the Thanksgiving holiday. That didn’t stop the USD from slipping lower though, with USD/JPY enduring the most losses. The pair fell from 139.00 to 138 lows but has gained around 40 pips now and is trading at 138.40s. The move comes amid a bid in bonds, with 10-year German bund yields marked down by 10 bps to 1.81% after the FED minutes yesterday sounded a less hawkish F.

With risk sentiment remaining positive since Tuesday, the commodity currencies were decent gainers as well, though alternating between flattish moves and a slight advance during the session. GBP/USD is up 0.7% to 1.2150s and looking towards its 200-day moving average at 1.2189 as the USD falters. EUR/USD has moved above and below 1.04 and is keeping close to large option expiries at that level.

Although the thin liquidity conditions will make it difficult for buyers to make any large moves before the weekend but that is always the annual affair when it comes to the Turkey Day holiday. USD/CAD reversed from below 1.40 in October and fell to 1.3230s this month, where it found support at the 100 daily SMA (green).

We saw a bounce from that moving average late last week, but the 50 SMA (yellow) which stood just below 1.35 turned into resistance at the top, rejecting the price. This pair reversed lower and is now headed back toward the 100 SMA and if that indicator is broken, then the next target will be the big round level at 1.30.

Although, crude Oil has turned bearish again this week as China continues with coronavirus lockdowns, after the bullish reversal on Monday.  So, that will weigh on the CAD, which will make it more difficult for sellers to continue pushing the price below the 100 SMA.

USD/CAD Live Chart

USD/CAD
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