USD/CAD 1H Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
After finding a support slightly below the 1.09 mark USD/CAD started to form a upward sloping pattern—rising wedge.
Currently, the pair is hovering around the lower trend-line of the pattern below the 1.12 level. Nonetheless, at the current trading levels there is a cluster of support levels (100 and 200-period SMAs, daily PP and pattern's support). Also an overwhelming majority (72%) of the SWFX traders' are bullish on the pair. Therefore, if the pair holds above the daily PP then a rebound above the 1.12 mark is likely. At the same time there is a downside risk in case the pair's bulls do not manage to carry the pair above the pattern's lower trend-line.
© Dukascopy Bank SA

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