USD/CAD forms descending triangle

Source: Dukascopy Bank SA
Positions Today Yesterday % Change
Longs 58% 60% -3.45%
Shorts 42% 40% 4.76%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Sell Sell Neutral
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

Contrary to prognoses, the USD/CAD did not manage to reach the monthly R1 1.3347. In contrast, it formed a descending triangle and turned the 100-hour SMA and the weekly PP at 1.3269 into resistance a fell along the upper descending trend-line right through the bottom edge of an ascending channel. Today's morning session did not show any signs that the currency rate has a power to recover. In addition, the rate continues to feel pressure from the 55- and 200-hour SMAs at 1.3252. For this reason, the freefall is expected to continue through until the pair reaches the weekly S1 at 1.3191. A light recovery near the lower horizontal trend-line might happen, but the breakout is still expected to happen downwards.

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