Looking at technical trading signals the U.S. dollar has a near-term “buy” signal against the Canadian dollar with the 12-day and 26-day moving average convergence divergence line rising above the 9-day signal line on Monday for the first time since September 5.
The MACD is an indicator of short-term momentum by focusing on exponential moving averages and closing prices. The 12-day and 26-day MACD is now at -0.0023 with the 9-day signal line at -0.0028.
The U.S. dollar fell 1.7 percent against the Canadian dollar between September 5 and October 1.
Longer term though, things are not looking quite so good for the greenback with the U.S dollar/Canadian dollar pair about to experience a death cross with the 50-day simple moving average about to cross below the 100-day simple moving average. The 50-day SMA is at 1.0366 and the 100-day SMA is at 1.0361.
Using those two averages the last golden cross, when the 50-day moved above the 100-day occurred on December 4, 2012, resulted in a 4.1 percent gain on the U.S. currency against the Canadian unit to date.