USD/CAD surges amid data release

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 49% 47% 4.08%
Shorts 51% 53% -3.92%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Sell
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

During the past 24 hours, the US Dollar has been dashing through various support/resistance levels, testing their boundaries for several hours but nevertheless failing to show any distinctive direction.  

The combined US/Canadian data release changed drastically this lack of movement. Even though Canada's CPI was in line with expectations, solid US building permits initiated a buying spree for the US Dollar. As a result, the rate surged 40 pips within the first 15 minutes after the release. 

As apparent on the chart, the Greenback has been trading in a channel up for the last six sessions. It is likely that the rate continues to move upwards after a minor correction south. This would in turn breach this junior channel and allow the Greenback to approach the weekly R2 at 1.2880.

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