USD/CAD Price Analysis: Moving lower within channel
- USD/CAD is moving lower within an ascending channel after almost touching the highs.
- The MACD has crossed its signal line, giving a sell signal.
- Heavy support lies at 1.3500 from a confluence of major moving averages.
USD/CAD is in a steady short-term uptrend, with the exchange rate rising within an ascending channel.
The pair recently reached the vicinity of the upper borderline of the channel before rolling over and beginning a decline. Its descent continues.
US Dollar to Canadian Dollar: 4-hour chart
The reversal lower is supported by a bearish crossover of the Moving Average Convergence/ Divergence (MACD) indicator, providing a corresponding sell signal (circled). The MACD is especially reliable at marking turns within a range or channeling market environment.
Despite the strength of the latest up leg and the overall bullish bias, price is moving lower as bears take over.
US Dollar to Canadian Dollar: Daily chart
It is quite possible USD/CAD will continue falling to a confluence of two major moving averages – the 50-day and 100-day Simple Moving Averages (SMA) situated at around 1.3500.
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