USD/CAD squeezed between 55– and 200-hour SMAs

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 68% 71% -4.41%
Shorts 32% 29% 9.37%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Buy Buy
Stochastic (5; 3; 3) Buy Sell Neutral
Alligator (13; 8; 5) Neutral Sell Sell
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

An intersection of the 55– and 100-hour SMAs at 1.2140 proved to be a strong support for the US Dollar, as it failed to push below the given mark. The rate subsequently edged higher, but was reversed at the weekly PP back to both SMAs. As a result, the bounds of the 55– and 200-hour SMAs are starting to squeeze the Greenback in a narrow range.

The rate has managed to recover gradually from the two-and-a-year low near 1.2060; however, its failure to accelerate indicate that bears might still succeed at pressuring the rate south. 

It is likely that traders lack decisiveness in the upcoming trading hours; thus maintaining the pair in a relatively stable position in the 1.2180/1.2200 area. In case the 200-hour SMA is breached, this might work as the necessary confirmation of a possible mediate-term surge.

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.