USD/CAD surges to 1.2700

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 72% 70% 2.78%
Shorts 28% 30% -7.14%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Sell Sell
RSI (14) Sell Neutral Buy
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Buy Sell Sell
SAR (0.02; 0.2) Buy Buy Sell
Aggregate

Beginning of the new trading week the currency pair met at the monthly PP at 1.2636. Using this support level as trampoline, the US Dollar started an eight hour surge against the Canadian Dollar. At the moment, the rate has reached the upper trend-line of a recently formed ascending channel. For this reason, a rebound is expected to follow. This scenario is supported by a number of technical indicators, which suggest that the pair is overbought. The rest of the day the currency rate most likely is going to spend in a downside movement within towards the southern boundary to create a third reaction low. Since there will be no data releases in the upcoming two days, the pair should continue to gradually advance in the above ascending channel.

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