Key Technical Levels
The USD/CAD has seen bearish momentum slow with a test of the 50-Day SMA at 1.0555 which is typically a significant technical level. The pair has traded near the level over the past two month which lessons its significance as a support level. However, it may be enough to give traders a reason to pause current bearish momentum with the OPEC meeting scheduled for tomorrow.
Quantitative Metrics
The sharp 150 pip decline that we have already seen from the USD/CAD and its ATR of 130 pips makes a strong case to target the pair. A Bollinger band width of 248 pips also speaks to its current trend of low volatility as it has remained range bound. Adding to the pair’s case is the minuscule difference between its 5-Day and 20-Day SMA’s of 51 pips. A middle of the pack one implied volatility of 11.43 doesn’t raise any red flags.
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To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
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