28 Jun 2017
USD/CAD is oversold on several parameters
The standout technical signal on a USD/CAD 4hr chart is a plunge of the RSI below its 25% threshold.
At the same time, negatively aligned 50- and 200-period moving averages point at a continued USD/CAD depreciation, with recent declines locking the RSI below the 50% mark. Worth mention is the 70% level which hasn't been explored for a while on the 4hr time frame.
Should the USD/CAD be unable to wave any additional bearish impulses, the mentioned momentum readings raise the odds of a minor squeeze back upwards.
At the same time, negatively aligned 50- and 200-period moving averages point at a continued USD/CAD depreciation, with recent declines locking the RSI below the 50% mark. Worth mention is the 70% level which hasn't been explored for a while on the 4hr time frame.
Should the USD/CAD be unable to wave any additional bearish impulses, the mentioned momentum readings raise the odds of a minor squeeze back upwards.