Baxia Markets
June 18, 2021

Strong support showed up on USDCAD

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The price met support at the beginning of May; it had hovered around 1.206 for 22 days. The downward trend on USDCAD was stable and lasted for almost one year. Changing such a long-lasting trend is not an easy thing. However, the strong support tells us that the price is turning. 



Bollinger Bands shows a steep angle on the upper band, along with the price line, although it cannot catch. The new trend on Parabolic SAR made a slight curve; this is a signal for a steeper trend coming up. The Moving Average 25 is moving up too; however, it cannot catch up with the price line. Finally, Ichimoku is getting thicker and moving down to the bottom of the price line, which is also a bullish signal. 




The standard deviation is going up as expected. Significant fluctuations always cause high standard deviation, which could be considered as a breakout signal. MACD already made a bullish cross, and it continues to go up.


Now, the bullish signal still dominates the price; the breakout has not chilled down yet. Thus, we should be prepared for a long upward trend. 


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