USD/CAD turned fairly bullish this month after being bearish in October. Crude Oil has been climbing increased in the previous couple of weeks, wh
USD/CAD turned fairly bullish this month after being bearish in October. Crude Oil has been climbing increased in the previous couple of weeks, which ought to have saved the CAD bullish as properly, however the tender unemployment report from Canada final month damage the sentiment surrounding the CAD.
Because of this, this pair has climbed round 250 pips from the lows this month. Throughout this time, shifting averages have became assist. The 100 clean MA (pink) offered resistance for a while and this pair retraced decrease, however the 100 easy MA (inexperienced) held the decline and the uptrend resumed.
The 20 SMA (gray) used to offer strong resistance final month when USD/CAD was bearish, however this month the 20 SMA has became assist as properly. Though, the 20 SMA was damaged final week, as this pair retraced decrease on some elevated USD weak spot, which got here after Powell’s feedback.
However, the 200 SMA (purple) became assist for this pair and the chart setup now factors to a bullish reversal. The stochastic indicator is oversold, which signifies that the pullback is full. the 200 SMA is offering assist, whereas the final two candlesticks appear to be pins, that are reversing alerts. We’re already lengthy on this pair, so this chart setup goes in our favour.