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USD/CAD traders could soon see a period of short-term weakness on an intraday
basis, allowing for some severe overbought studies to unwind.
The 50 SMA
is above the 200 SMA on the hourly chart, at a distance superior to the daily
ATR. This indicates an up-trending condition.
Longer-term traders
following the 4H stochastic above 50%, don’t necessarily need to liquidate their
long positions, but the 1-hour stochastic is increasingly hinting that it could
be necessary soon.
The oscillator has build a plateau above the 70% level
for more than eight hours and has just abandoned overbought territory with the
recent hourly close. This is a warning of a potentially important short-term
top.
TREND: BULLISH
OS/OB: OVER BOUGHT