USD/CAD slips toward 1.3757 support as trend stays rangebound
USD/CAD closed at 1.4004 on 23 October, down 0.8% over the past week and 1.6% over the past month. The close sits just below the 50-day moving average of 1.4046, a gap of -0.3%, but remains 0.6% above the 200-day moving average of 1.3926, leaving price sandwiched between the two averages.
The daily trend rule reads Range, since the close sits between the 50-day and 200-day moving averages rather than clearly above or below both. The 50-day average is rising, while the 200-day average lags beneath. The most recent confirmed swing high is 1.4299 from 14 October, the 52-week high, and the most recent confirmed swing low is 1.3757 from 8 September. The 52-week low stands at 1.3479. On the weekly chart, the close is just below the 10-week average of 1.4020 and well above the 40-week average of 1.3884.
RSI (14) stands at 34, closer to the 30 level many traders call oversold than to the 70 level called overbought. The last five daily closes slipped steadily from 1.4110 down to 1.4004, showing a persistent mild drift lower. Average daily range (ATR 14) is 0.0063, which is a useful gauge of typical day-to-day movement when reading how far price might travel within a session.
A daily close below the nearest support at 1.3757 would put the next support, 1.3729, in focus and would suggest the recent slide is extending. Conversely, a daily close back above the 50-day moving average at 1.4046, and then above resistance at 1.4080, would signal that the pullback from the 1.4299 high has stalled and shift attention toward that resistance level.
The Bank of Canada's Overnight Rate decision on Wednesday 28 October at 13:45 GMT is the key event for this market this week, with consensus at 2.50% versus a prior 2.25%. As a Canadian dollar pair, USD/CAD is directly sensitive to this rate announcement and any accompanying statement.
- Daily prices: EODHD (USDCAD.FOREX); trend, levels and RSI computed by Praevis
- Events: Praevis economic calendar