USD/CAD Up 1 Pips Over Past Hour, 4 Day Up Streak Broken; in a Downtrend Over Past 90 Days – CFD Trading

Hourly Update

(Last Updated July 12, 2021 1:40 GMT)

Currently, USDCAD’s rate is up 1 pips (0.01%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as USDCAD has now gone down 4 of the past 5 hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on USDCAD. Given that we see downtrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

USDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

After 4 up days, USDCAD snaps its streak, falling 78 pips (-0.62%) over the past day to close at an exchange rate of 1.24503. Relative to other instruments in the Forex asset class, USDCAD ranked 35th yesterday in terms of percentage price change. Let’s take a look at price chart of USDCAD.

USDCAD

USDCAD Technical Analysis

The first thing we should note is that USDCAD is now close to its 20, 50, 100 and 200 day averages, located at 1.2356, 1.2211, 1.2376 and 1.2649 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 100 day average, which is 73.8 pips away. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. For additional context, note that price has gone up 18 out of the past 30 days. Moreover, we’re also seeing a bearish engulfing pattern; in light of the uptrend on the 30, 14 and 90 day charts this may be particularly noteworthy, as it may signal the uptrend is cooling and ready to reverse.

Leave a Reply

Your email address will not be published. Required fields are marked *