USD/CAD has been bullish because the center of September. It made a bullish transfer again then, then it traded sideways for a few weeks and final
USD/CAD has been bullish because the center of September. It made a bullish transfer again then, then it traded sideways for a few weeks and final week we noticed one other bullish transfer. USD/CAD was buying and selling sideways since then, however yesterday we noticed a bearish reversal, as Crude Oil turned bullish.
At this time, we heard that an Iranian Oil vessel was attacked by missiles, which broken two tankers in it. We nonetheless don’t know who carried out the assault, however the whole lot factors to Saudi Arabia. Anyway, regardless of who shot the vessel, Crude Oil has climbed greater than $three from the lows yesterday.
Consequently, USD/CAD has turned bearish within the final two days. We determined to take this chance and go lengthy on this pair on the 100 SMA (purple) on the H1 chart, which comes on the similar degree because the 50 SMA (yellow) on the H4 timeframe, as proven on the chart above.
However, the decline continued and after the assault, Crude Oil broke the 50 SMA. Though, the decline stopped proper on the 100 SMA (purple). The worth bounced off that transferring common, however the bounce stopped on the 50 SMA, which appears to have was resistance now.
USD/CAD returned decrease, however it has been discovering help on the 100 SMA. Now this indicator is the final hope for our commerce on this pair. If it goes, then sellers will resume management.