The Canadian Dollar is trading against the Hong Kong Dollar in the short term descending channel. The pattern started to form right after the currency exchange rate broke through the bottom trend line of the preceding ascending channel. At the present moment, the pair is trying to reach the upper edge of the formation, which is supported by the 200-period SMA at the 5.7829 level. A rebound most likely is going to occur. If this scenario comes true, the rate will resume a movement in the downward direction. There, near the bottom line of the channel, the currency pair will have to face a stronger barrier, consisting from the weekly S1 at 5.7631 and monthly PP at 5.7451, which may lead to breaking of the formation.
| Level | Rationale | Indicator | 1H | 4H | 1D | |||
| R4 | 5.8324 | Weekly R2 | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 5.8061 | Weekly R1 | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 5.7859/61 | Trend line; Upper Bollinger Band | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 5.7830 | 200-period SMA | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 5.7771 | 100-period SMA | CCI (14) | Sell | Sell | Neutral | ||
| S2 | 5.7736 | 20-period SMA | AROON (14) | Buy | Buy | Buy | ||
| S3 | 5.7711 | 55-period SMA | Alligator (13; 8; 5) | Buy | Sell | Buy | ||
| S4 | 5.7610 | Bottom Bollinger Band | SAR (0.02; 0.2) | Buy | Buy | Buy | ||
| Aggregate | → | ↘ | → |