USD/CAD reveals medium pattern
The previously expected decline in a narrow ranged pattern down to the 1.25 mark did not occur. The reason for that is the existence of a medium term descending pattern, which revealed itself during the last 24 hours.
The pattern drawn on Tuesday actually represented a move downwards in the borders of the medium term channel.
By the middle of Wednesday’s trading the USD/CAD was squeezed in between the support of the 55 and 100-hour SMAs and the medium scale pattern’s resistance line. This was due to the markets expecting the announcement of the Bank of Canada’s interest rate, which has been seen to cause swings in the range from 60 to 200 base points.
The pattern drawn on Tuesday actually represented a move downwards in the borders of the medium term channel.
By the middle of Wednesday’s trading the USD/CAD was squeezed in between the support of the 55 and 100-hour SMAs and the medium scale pattern’s resistance line. This was due to the markets expecting the announcement of the Bank of Canada’s interest rate, which has been seen to cause swings in the range from 60 to 200 base points.
Comment:
Another data release has caused the USD/CAD to jump. Namely, the release of the Canadian CPI and Retail Sales caused a jump of almost 50 base points.
The data release was covered by the Dukascopy Research team on the bank’s life webinar, and traders attending managed to take profit from the event.
Regarding the future, the main attention is to be focused on the freshly discovered ascending medium term pattern. However, the rate still needs to decline after the recent sudden gains.
The reason for that will be the following taking of profits and taking in of the new fundamental information.
The data release was covered by the Dukascopy Research team on the bank’s life webinar, and traders attending managed to take profit from the event.
Regarding the future, the main attention is to be focused on the freshly discovered ascending medium term pattern. However, the rate still needs to decline after the recent sudden gains.
The reason for that will be the following taking of profits and taking in of the new fundamental information.
The data release was covered by the Dukascopy Analysts on the bank’s live webinar, where the swing was explained and taken advantage of by the present traders.
Regarding the technical analysis aspect of the fundamental event, it can be noticed that various technical levels still influenced the currency exchange rate during and after the event. However, they are far to many to be described in detail.
Meanwhile, it could be spotted by mid-Thursday that the rate was set to be squeezed in between support at 1.2590 and various resistance levels near 1.2610.