Has the correction in USD/CAD run its course?

FXStreet Algorythms FXStreet

Although positively aligned, the 50- and the 200-period SMAs see the USD/CAD quoting between both averages on 4H charts.

The shift from a steady rally to the unfolding of a corrective pattern has brought RSI below its 35% level, considered oversold territory in an otherwise bullish context.

While still above its 200 SMA, buyers may try to keep the upward trajectory in place. If taken out, a slide below the 200 moving average would suggest an increased risk that the corrective process has developed into a new downward trend. A close back above the 50 SMA would delay the current stumbling and spur ideas that another wave of demand is likely.

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FXStreet Algorythms

FXStreet

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