USD/CAD’s key SMA studies have produced a death cross. SMA crosses are lagging indicators and often trap traders on the wrong side of the market. USD/CAD is trading near 1.3330 at press time, representing a 0.15% decline on the day. The bulls failed to clear the psychological hurdle of 1.34 on Monday. The daily chart shows the 50-day simple moving average (SMS) has crossed under the 200-day SMA, confirming the so-called death cross, a long-term bearish indicator. The death cross, however, is based on backward-looking averages and tends to lag prices. As such, it is often considered a contrarian indicator. In addition, the slow stochastic has created higher lows contradicting lower lows on the price chart. That bullish divergence is suggestive of the ebbing of downward momentum. A similar sentiment is being echoed by the long tail attached to the previous week’s candle. All in all, the odds appear stacked in favor of a stronger corrective bounce, possibly to the 50-day SMA, currently at 1.3496. The case for a notable bounce would weaken if the spot finds acceptance under the Aug. 5 low of 1.3233. Daily chart Trend: Bullish Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Japan current account surplus narrows to 5-year low FX Street 2 years USD/CAD's key SMA studies have produced a death cross. SMA crosses are lagging indicators and often trap traders on the wrong side of the market. USD/CAD is trading near 1.3330 at press time, representing a 0.15% decline on the day. The bulls failed to clear the psychological hurdle of 1.34 on Monday. The daily chart shows the 50-day simple moving average (SMS) has crossed under the 200-day SMA, confirming the so-called death cross, a long-term bearish indicator. The death cross, however, is based on backward-looking averages and tends to lag prices. As such, it is often considered a contrarian indicator. … Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
