USDCAD lost ground yesterday at the New York open after the ECB press conference had caused price to rise on european pairs. Yen got strong and GBP and EURO dropped more than 100 pips, bringing Oil down with them. We are still technically bearish on this pair for the moment looking for possible reversal signals as it seems this pair is overbought.
We can see on the hourly that CAD reversed right at the old support which is also a Daily M3 and very close to the Hourly 150EMA. Forecast for tomorrow could include some more southern winds dropping back down to the Daily M1 and possibly making a double bottom? Once again let’s wait and see what’s gonna happen before we get our hopes up for a possible upside rally.
On the Daily we are entering an important event area and we have definitely crossed below the 365 EMA which is an indicator I keep around for longterm trends. If we range for a while from here we could see theses two EMAs (150-365) tighten and cross over for further down trend.
Trade Safe 😉