The USD/CAD has been bearish since March, when it stopped surging larger, following a 15 cent climb. The bearish momentum continued till September 1, pushing this pair beneath 1.30 for a second, however the value didn’t keep there too lengthy, earlier than pulling again up.
This pair continued to climb, gaining greater than four cents from the underside. This advised that the bigger bearish pattern might need come to an finish, for the reason that goal of 1.30 was reached and exceeded, and the weak stops beneath that had been triggered.
However the retrace ended proper on the 100 SMA (inexperienced) on the day by day chart, and on the final day of September. This pair stays bearish for now, and shifting averages are doing job of conserving it that manner. The 200 SMA (yellow) stopped its climb final week, whereas the 20 SMA did so earlier at present, which we missed. That was alternative to promote this pair, however we’ll wait for an additional retrace larger, and possibly open a promote foreign exchange sign then.