USD/CAD gains on weak Canadian Dollar
The US Dollar has continued to surge against the Canadian Dollar for the past few days. On Friday, it was noticed that the surged occurred in a pronounced manner after the data released of the Canadian CPI and Core Retail Sales.
The USD/CAD exchange rate gained 71 base point or 0.56% and continue fluctuating in the 1.28 regions. The Statistics simultaneously released seven data sets, where Consumer price index came in line with economists expectations of 0.3%.
Everything being equal, the currency exchange rate is likely to continue moving in an ascending channel until it breakout from a significant resistance level at 1.2921 during the following trading sessions.
The USD/CAD exchange rate gained 71 base point or 0.56% and continue fluctuating in the 1.28 regions. The Statistics simultaneously released seven data sets, where Consumer price index came in line with economists expectations of 0.3%.
Everything being equal, the currency exchange rate is likely to continue moving in an ascending channel until it breakout from a significant resistance level at 1.2921 during the following trading sessions.
Comment:
The US Dollar, as expected on Wednesday, managed to gain more ground against the Canadian currency. However, the surge was stopped eventually near mid-day by the monthly pivot point at 1.2917.
Due to the fact that most previously drawn trend lines were broken, a large scale review of the currency pair has been conducted. Basically, Dukascopy analysts have marked a descending long term and a medium term ascending pattern.
In regards to the near future, the various SMAs were set to push the rate against the upper trend line of the dominant descending channel pattern. This event is set to result in a break out either to the upside or the downside in the upcoming trading sessions.
The US Dollar, as expected on Wednesday, managed to gain more ground against the Canadian currency. However, the surge was stopped eventually near mid-day by the monthly pivot point at 1.2917.
Due to the fact that most previously drawn trend lines were broken, a large scale review of the currency pair has been conducted. Basically, Dukascopy analysts have marked a descending long term and a medium term ascending pattern.
In regards to the near future, the various SMAs were set to push the rate against the upper trend line of the dominant descending channel pattern. This event is set to result in a break out either to the upside or the downside in the upcoming trading sessions.
Comment:
The US Dollar managed to pass the recently discovered dominant patterns resistance line against the Canadian currency. However, by the middle of Friday the surge had been stopped by the resistance of a junior large scale pattern just above the 1.2920 mark. Moreover, the resistance had managed to stop two surges.
Regarding the near term future, the rate is most likely going to make more attempts to pass the resistance of the mentioned long term pattern. Although, as it has held its ground for so long, the rate would need additional support to pass the line.
The support might come in the form of the 55-hour simple moving average, which was located at the 1.2880 mark.
Regarding the near term future, the rate is most likely going to make more attempts to pass the resistance of the mentioned long term pattern. Although, as it has held its ground for so long, the rate would need additional support to pass the line.
The support might come in the form of the 55-hour simple moving average, which was located at the 1.2880 mark.
Comment:
A breakout occurred to the upside. A look at the four hourly chart explains why.
Comment:
Strong upside momentum continues to dominate the US Dollar against the Canadian Dollar, as the pair has been supported by the 55– hour simple moving average since last week.
This movement up has formed a smooth short-term ascending pattern. During the first part of Monday's session, the USD/CAD currency pair was trading with low volatility as bulls and bears were indecisive.
As for near future, it is expected that the currency exchange rate remains trading in the newly formed junior ascending channel. However, it has to surpass a strong resistance set by a dominant long-term pattern.
This movement up has formed a smooth short-term ascending pattern. During the first part of Monday's session, the USD/CAD currency pair was trading with low volatility as bulls and bears were indecisive.
As for near future, it is expected that the currency exchange rate remains trading in the newly formed junior ascending channel. However, it has to surpass a strong resistance set by a dominant long-term pattern.
From a technical perspective the reason for the surge was caused by the support of the monthly PP, which caused the rate to initiate a surge from 1.2746 to 1.2890 by the middle of Wednesday.
However, the most important factor by midday was that the pair had broken the resistance of a dominant channel down pattern near the 1.2880 mark. That indicates that the surge was set to continue even higher.