USD/CAD breaks junior pattern
The previous forecast for the USD/CAD pair was wrong on one account. The pair did not need the additional support of the weekly S1 at 1.25 mark to break the junior patterns resistance.
After dropping on the release of the Canadian Retail Sales on Tuesday the currency exchange rate found support in the lower trend line of the dominant pattern. The support was strong enough to propel the rate through the resistance of the junior pattern and the 55-hour SMA.
In regards to the short term future, the pair needs to break past the 100-hour SMA at 1.26 mark to surge up to the strong resistance cluster near the 1.2640 mark.
After dropping on the release of the Canadian Retail Sales on Tuesday the currency exchange rate found support in the lower trend line of the dominant pattern. The support was strong enough to propel the rate through the resistance of the junior pattern and the 55-hour SMA.
In regards to the short term future, the pair needs to break past the 100-hour SMA at 1.26 mark to surge up to the strong resistance cluster near the 1.2640 mark.
Trade closed: target reached:
The recently discovered junior channel down pattern has recently been adjusted, as it revealed a new rebound point on Friday morning. However, further decline might be limited.
The reason for that is the fact that the pair is set to rebound and reach for the resistance of the 55 and 100-hour SMAs, which have shown strong influence. Most likely the rate will surge in a very short term until it encounters notable resistance.
Afterwards it should be expected that the pair will continue the decline and reach for the 1.25 mark, where the monthly S1 is located at. In addition, the lower trend line of the most dominant pattern will approach that level next week.
The reason for that is the fact that the pair is set to rebound and reach for the resistance of the 55 and 100-hour SMAs, which have shown strong influence. Most likely the rate will surge in a very short term until it encounters notable resistance.
Afterwards it should be expected that the pair will continue the decline and reach for the 1.25 mark, where the monthly S1 is located at. In addition, the lower trend line of the most dominant pattern will approach that level next week.
The resulting decline of the pair has helped in mapping out the new junior pattern. During the middle of the Thursday’s trading session the rate suddenly rebounded, giving the possibility to draw a descending channel.
In accordance with the channel a rebound is set to continue. However, it is doubtful that the surge will pass the 55 and 100-hour SMAs. More likely the rate will be forced into the 1.25 mark, where the weekly S1 is at.