The US Dollar stopped its depreciation against the Canadian Dollar on Monday. The reason for the stop of the surge and a resulted short term surge was the encountering of a combined support level at the 1.24 mark.
Namely, the currency exchange rate found support in the lower trend line of the drawn junior channel down pattern and the first weekly support at the already mentioned 1.24 level.
Due to that reason it is expected that the pair might surge until it meets the upper trend line of the channel down pattern. Afterwards the pair should continue the decline. Or the rebound might not even continue.
Namely, the currency exchange rate found support in the lower trend line of the drawn junior channel down pattern and the first weekly support at the already mentioned 1.24 level.
Due to that reason it is expected that the pair might surge until it meets the upper trend line of the channel down pattern. Afterwards the pair should continue the decline. Or the rebound might not even continue.
Comment:
To do the review of the USD/CAD currency exchange rate Dukascopy Analysts expected and first covered the Bank of Canada rate announcement.
The rate was hiked. However, due to it being perfectly predicted prior to the event, the fundamental event only caused a large increase of volatility.
Due to that reason the short and medium technical pattern drawing for the time being has become obsolete.
Although, one can look at the dominant trend lines and see that the pair only slightly bounced out of the drawn borders of two long term patterns. The patterns combined indicate that eventually the pair should decline.
To do the review of the USD/CAD currency exchange rate Dukascopy Analysts expected and first covered the Bank of Canada rate announcement.
The rate was hiked. However, due to it being perfectly predicted prior to the event, the fundamental event only caused a large increase of volatility.
Due to that reason the short and medium technical pattern drawing for the time being has become obsolete.
Although, one can look at the dominant trend lines and see that the pair only slightly bounced out of the drawn borders of two long term patterns. The patterns combined indicate that eventually the pair should decline.
Comment:
In the 24 hours following the Bank of Canada’s interest rate hike, the USD/CAD currency exchange rate seems to have resumed following the previously drawn long term patterns.
The currency pair found support just above the weekly S1, which is located at the 1.2364 level. Afterwards, the rate surged through various hourly simple moving averages until it reached the upper trend line of a long term and large scale channel down pattern.
It can be expected that the rate will bounce off this resistance level and resume its long term decline.
In the 24 hours following the Bank of Canada’s interest rate hike, the USD/CAD currency exchange rate seems to have resumed following the previously drawn long term patterns.
The currency pair found support just above the weekly S1, which is located at the 1.2364 level. Afterwards, the rate surged through various hourly simple moving averages until it reached the upper trend line of a long term and large scale channel down pattern.
It can be expected that the rate will bounce off this resistance level and resume its long term decline.
Comment:
As it was expected, the upper trend line of the dominant channel down pattern of the USD/CAD currency exchange rate held its ground and forced the currency pair into a retreat.
By the middle of Friday’s trading session the currency pair had reached below the support line of a junior pattern. However, the descent was stopped by at the 1.24 mark. Due to an undiscovered reason that level has begun to provide support to the Greenback against the Loonie.
However, this fact does not change the forecast of an upcoming decline down to the 1.2360 mark.
By the middle of Friday’s trading session the currency pair had reached below the support line of a junior pattern. However, the descent was stopped by at the 1.24 mark. Due to an undiscovered reason that level has begun to provide support to the Greenback against the Loonie.
However, this fact does not change the forecast of an upcoming decline down to the 1.2360 mark.
Comment:
The previous expectations from the USD/CAD currency exchange rate have not fulfilled. The Buck has regained ground against the Loonie. Moreover, the upper trend line of the dominant descending channel pattern was broken.
In addition, a new medium scale ascending channel pattern has been spotted. It can be drawn, if one ignores the upside volatility, which was caused by the Bank of Canada’s rate hike last week.
In regards to the short term future, the pair is set to meet with a strong support cluster near the 1.2450 mark, where the 55 and 100-hour SMAs together with the weekly PP are located at.
The previous expectations from the USD/CAD currency exchange rate have not fulfilled. The Buck has regained ground against the Loonie. Moreover, the upper trend line of the dominant descending channel pattern was broken.
In addition, a new medium scale ascending channel pattern has been spotted. It can be drawn, if one ignores the upside volatility, which was caused by the Bank of Canada’s rate hike last week.
In regards to the short term future, the pair is set to meet with a strong support cluster near the 1.2450 mark, where the 55 and 100-hour SMAs together with the weekly PP are located at.
Comment:
The USD/CAD has shown a miraculous move. After touching the 1.25 mark and revealing an ascending channel pattern during the first half of this week the currency exchange rate was expected to surge.
However, decline which lasted for an hour in the middle of Tuesday’s trading session resulted in a passage of the support provided by the various SMA’s and a medium term pattern’s lower trend line.
Due to that reason a few hours later a decline began, which by the middle of Wednesday was about to reach the 1.3230 level, where a dominant patterns support line was located at.
However, decline which lasted for an hour in the middle of Tuesday’s trading session resulted in a passage of the support provided by the various SMA’s and a medium term pattern’s lower trend line.
Due to that reason a few hours later a decline began, which by the middle of Wednesday was about to reach the 1.3230 level, where a dominant patterns support line was located at.
Comment:
The declined of the US Dollar continued against the Canadian Dollar as expected.
The fundamental data release at 13:30 GMT on Thursday had no effect on the price movement, the market is relatively calm and continued the movement south.
The combination of 55—hour, 100—hour and 200—hour SMAs are pushing the
price further south and this is likely to continue until the pair finds support at the
weekly pivot point level at the 1.2222 mark.
Furthermore, in regards to the short-term future, the pair is likely to be trading in a down channel because of the statements made by the US president at Davos.
The fundamental data release at 13:30 GMT on Thursday had no effect on the price movement, the market is relatively calm and continued the movement south.
The combination of 55—hour, 100—hour and 200—hour SMAs are pushing the
price further south and this is likely to continue until the pair finds support at the
weekly pivot point level at the 1.2222 mark.
Furthermore, in regards to the short-term future, the pair is likely to be trading in a down channel because of the statements made by the US president at Davos.
The consolidation, which started on Monday, on the USD/CAD currency pair has broken the previously speculated channel down pattern. Namely, the patterns resistance line managed to hold on only for three hours.
However, that does not necessarily indicate at an upcoming surge. In the second half of Tuesday’s trading session the currency pair was approaching the resistance represented by the 55-hour SMA, which was located at the 1.2460 mark.
Moreover, there are additional resistance levels located at the 1.2470, 1.2480 and 1.2490 levels. Due to that it can be expected that the pair will resume the decline and reveal a medium sized pattern.