- Tuesday’s evening the currency exchange rate spent in an expected horizontal movement along the 55-hour towards the bottom trend-line of an active .
- At some moment, the pair has entered into a four hour downfall and has practically sneaked from the pattern.
- However, a combination of the above support line and moving average should be enough to force the pair to change direction.
- As 70% of traders continue to hold long positions, in the short run the Greenback is expected to continue to appreciate against the Loonie towards the weekly R1 at 1.2238.
- The summary of technical indicators supports this scenario by sending clear buy signal.
- But even if the pair oversteps the pattern’s boundary, the drop should not go below the monthly PP at 1.2636 and the 100-hour .
In accordance with prognoses, the currency pair bounced off from a combination of the 55-hour SMA and the bottom trend-line of an ascending channel, and used this impulse to jump to the desired weekly R1 at 1.2738.
Unfortunately, a combined effect from a release of the US Unemployment Claims and PPI and well as the Canadian NHPI threw the currency rate down by 50 basis points. The downfall was stopped only near the 100-hour SMA at 1.2675.
In the rest of the day the rate, most probably, is going to try to recover some of the lost positions and, thus, get back to the above weekly R1. As majority of traders continue to hold long positions, the pair is expected to continue to move in the northern direction at least until the end of this week.