USD/CAD during the recent week was in a strong and consistent uptrend that buyers were successful in achieving the highest price of 1.16702. Right now price in long time frames such as monthly, weekly and daily is above 5-day moving average and warns about price increase in long period of time.According to the formed movements in the previous week, there is a Shooting Star candlestick pattern which shows indecision marker for ascending or descending and there is a warning for stopping of more ascending which need the confirmation by the next bearish candle.
According to the formed price movements in the chart, between the bottom price of 1.01845 and top price of 1.16702 , there is AB=CD harmonic pattern with ideal ratios of 61.8 and 161.8 that with completion of the D point there will be a warning for descending of price. RSI indicator in weekly time frame is in saturation Buy area and also in divergence mode with the price chart warns about changing price direction.Generally until the mentioned top price on the resistance channel edge is preserved , the price has the potential for reformation and descending in this currency pair.
I don’t get it. Marketwatch also reported: “The dollar USDCAD, +0.29% rose to 1.165 Canadian dollars, its highest level since last Wednesday.”
This pair broke new 7-day highs back on the 28th of November and did it again on December 1, 5, 8, 9, 10, 11, 12, and 15 and has not broken higher than the 15th high since.
Thus, on Wednesday, Thursday, and Friday this pair posted lower highs than the previous session. Only today did it post a higher high than the previous session by a mere 8.7 pips, failing to break above the highs of last Monday, Tuesday, Wednesday, or Thursday. It stopped 28.8 pips short of the current 7-day high. And the volatility fell from a 226 pip 3-day range to an 82 pip 3-day range from last Monday to today. (I understand it DID go slightly higher than Thursday in some markets, but by a single digit).
This pair has certainly been trending upward, but that begin weeks ago and the last five sessions have shown no confirmation whatsoever that the trend is continuing or has become stronger. True THC will kick in if the pair goes above the highs of the 15th.
An arbitrager on acid must see past the hype.
While I am long this pair and agree that the trend is up, today’s session gives no new information to trade on.
USD/CAD tried to make a bullish move on Friday but somehow failed short and now price is 1.3092. Improved momentum can drive the pair during the next week.
USD/CAD is currently trading at 1.3335, lower from 1.35 before the announcement that the Fed is raising the interest rate. Consolidation around current price is expected to continue today.