Sasha Singh
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USDCAD : Is Canadian Dollar at Risk?

(USDCAD : 4 Hour chart)

USDCAD surging today and seems like following an uptrend channel pattern. The pair rose from the rising support trend line and currently testing resistance from the 200 day SMA. The 50 day SMA just crossed above the 100 day SMA signaling a bullish pattern. However the resistance trend line might resist the pair to cross above it. Also there is a resistance at 1.0775 and if the pair crosses above this resistance the next nearest resistance it may find is at 1.0808.

(USDCAD : Daily Chart)

However if looking at the Daily Chart, the 50 day SMA has finally crossed below the 200 day SMA signaling that the pair is going to find resistance and decline.

Today was an important day for Canadian data release. The Bank of Canada left the interest rate unchanged in July. The economists were expecting the same. The Bank said it is neutral against the timing and direction of any change in the monetary policy and it will depend on the data which strongly influence the outlook of the economy. Canadian dollar posted a selloff soon after the release of the data.