USD/CAD Down 10 Pips On 4 Hour Chart, 2 Day Down Streak Snapped; is Inching Close to 20 and 200 Day Averages

USD/CAD 4 Hour Price Update

Updated July 06, 2020 09:09 AM GMT (05:09 AM EST)

USD/CAD is down 10 pips (0.07%) since the previous 4 hours (opening the current 4 hour candle near 1.3528), marking the 3rd candle in a row a decrease has occurred. Out of the 37 instruments in the Forex asset class, USD/CAD ended up ranking 22nd for the four-hour candle in terms of price change.

USD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of USD/CAD continues; to start today, it came in at a price of 1.35505, up 5 pips (0.04%) since yesterday. Relative to other instruments in the Forex asset class, USD/CAD ranked 8th yesterday in terms of percentage price change. The price chart of USD/CAD below illustrates.

USD/CAD Technical Analysis

Coming into today the current price of USD/CAD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 200 day average, which is 3 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 30 day timeframe. For additional context, note that price has gone up 15 out of the past 30 days. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on USDCAD, with 14 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 0.93, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price has successfully broken out of the wedge formation and we are getting a retest now and after that retest we should see a sell to the bottom of the wedge.

https://www.cfdtrading.com/usd...