USD/CAD moves above 200-hour SMA
The bullish market sentiment prevailed on Tuesday’s session, resulting in a breakout of the 55– and 100-hour SMAs and the weekly PP. The 200-hour SMA, however, proved to be a strong barrier that reversed the rate’s direction south. The price rebounded from the shorter-term SMAs early on Wednesday and resumed its appreciation.
Technical indicators favour another reversal that is likely to be a short-term correction against the general movement up. By and large, the channel is not expected to hold any longer; thus, the US Dollar may reach and bounce off the 1.2500 area—an intersection of the 55– and 100-hour SMAs—and remain near 1.26.
Technical indicators favour another reversal that is likely to be a short-term correction against the general movement up. By and large, the channel is not expected to hold any longer; thus, the US Dollar may reach and bounce off the 1.2500 area—an intersection of the 55– and 100-hour SMAs—and remain near 1.26.
During the last 24 hours the US Dollar has not changed its positions much against the Canadian Dollar. The currency exchange rate remained near the weekly R2 at the middle of the day. The reason for that might be the fact that the markets were expecting the release of the Canadian GDP data.
However, as the data was release, it finally allowed the currency exchange rate to decline, in accordance with the junior channel up pattern. It should be expected that the rate will either trade flat or decline until it confirms the lower trend line of the channel up pattern.
Likely that will occur, when the 55-hour SMA catches up with the pair.