USD/CAD breaks long term pattern
The previous forecast for the USD/CAD pair has not come into reality. The pair has broken the upper trend line of the long term ascending channel pattern during the early hours of Thursday’s trading session. However, by the middle of the day’s trading session the pair had changed direction and retreated to find support in the previously active resistance line.
As a result of the observation and some drawing, the Dukascopy Research tem discovered that that point was crossed by a medium term ascending channel pattern’s upper trend line. The trend line can be also used to set a parallel line for the purpose of observing the ascending medium term trend. In the near future, if the support is provided to the rate, and the 55-hour SMA approaches from the downside, a surge up to the 1.2635 mark will occur.
As a result of the observation and some drawing, the Dukascopy Research tem discovered that that point was crossed by a medium term ascending channel pattern’s upper trend line. The trend line can be also used to set a parallel line for the purpose of observing the ascending medium term trend. In the near future, if the support is provided to the rate, and the 55-hour SMA approaches from the downside, a surge up to the 1.2635 mark will occur.
As the US employment data set was released the US Dollar jumped against the Canadian Dollar. However, by previously judging the technical charts, the move was already expected. During the hour of the data released at 12:30 GMT the currency pair touched the lower trend line of the medium term ascending channel pattern, rebounded against it and then suddenly jumped in accordance with the pattern.
The rate’s surge was stopped by the combined resistance of the weekly R2 and monthly PP just below the 1.2340 mark. It can be expected that a period of consolidation of the massive gains of the jump will occur.
Afterwards the markets will most likely experience a continuation of the surge of the US Dollar against the Loonie.