USD/CAD’s EMAs Move Into Bullish Stack

Russell Shor, CFTe, MFTA FXCM

The below is the daily chart of the USDCAD. The green 5-day EMA has crossed above the orange 13-day EMA (green ellipse). This has put its EMAs into a bullish stack. I.e. the green 5-day EMA is above the orange 13-day EMA, and the orange 13-day EMA is above the black 34-day EMA. Moreover the RSI(9) has popped above 50 which is indicative of bullishness. We do note that the loonie has been range bound since the beginning of March (red rectangle) and EMAs tend to work best in trending markets. Therefore, the bullish stack must be viewed in this context. However, if the EMAs do develop angle and separation it will be regarded as bullish.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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