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Forex News

Fades gains above 200-hour moving average

  • USD/CAD trades below a key moving average support. 
  • The hourly chart shows a rising channel breakdown and bearish average crossover. 

The USD/CAD pair is trading just below the 200-hour moving average at 1.4073 at press time, having faced rejection at 1.4088 an hour ago. 

Acceptance under the 200-hour average would mean the bounce from Thursday’s low of 1.40 has ended and the sell-off suggested by the 4-hour chart rising channel breakdown has resumed. 

The ascending channel was breached during Thursday’s Asian trading hours and is now accompanied by a bearish crossover of the 50- and 100-hour averages and a below-50 reading on the hourly chart relative strength index.

Hence, a re-test of 1.40 looks likely. A violation there would shift the focus to recent lows near 1.3850. On the higher side, a move above 1.4250 is needed to revive the bullish setup. 

1-hour chart

Trend: Bearish

Technical levels


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