USD/CAD continues to move within descending channel

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 73% 68% 6.85%
Shorts 27% 32% -18.52%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Buy Buy Neutral
Stochastic (5; 3; 3) Sell Neutral Neutral
Alligator (13; 8; 5) Sell Sell Sell
SAR (0.02; 0.2) Sell Sell Sell
Aggregate

The early hours of Tuesday trading session showed that the American Dollar is continuing to trade against the Canadian Dollar in a recently formed descending channel. The currency pair made one attempt to break to the top, but was reversed by a combination of the 20- and 55-hour SMA near the 1.2668 mark. It is expected that the rate will subsequently bounce off from the bottom trend-line and then continue to move within the channel, as for now it has only four confirmation points. On the other hand, there is also a possibility that a downside momentum given by the above combined resistance level will escort the pair out of the pattern towards the monthly S2 at 1.2552 and the weekly S1 at 1.2546.

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