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USDCAD spikes at 100-hour MA break but finds sellers near 200-hour MA


USDCAD trades between the 100/200 hourly moving averages

the USDCAD

USD/CAD

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar of Canada (symbol $, code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of each month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar of Canada (symbol $, code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of each month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.
Read this term rose earlier in the North American session, helped by flows out of riskier “commodity currencies” and into the USD (on declines in US equities).

The pair was also influenced by the break above the 100 hourly moving average (blue line in the chart above currently at 1.28142).

Earlier in the day, the USDCAD pair climbed to test this moving average only to retreat past it. After consolidating just above Friday’s lows, price resumed an upward move that was able to break through the MA in the 2nd test.

USDCAD buyers then pushed the price higher to test the 200 hourly moving average (green line in the chart above). The price broke through this level, but the momentum could not be sustained (stocks started to stabilize) and the price fell back down.

The ensuing downward move stalled past the 100 hourly moving average at 1.28142 (the low hit 1.28205), and the pair is currently trading at 1.28393, near the midpoint of the moving average levels. end of book.

Buyers and sellers will now clash, with traders ultimately looking for a break in both directions.


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