USD/CAD 4H Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA

USD/CAD rebounded from the 0.9795 level forming a rising wedge pattern on the 4H chart. The formation has 64% quality along with 58% magnitude in within 97 bars.

The price recoiled from its almost half-year low around 0.975, and has grown to the 0.1007, where it is fluctuating now. Present bias on the 1H chart is neutral, while indicators give opposite signals, which leads to the opposite sides' balance. Bulls may focus their attention to the support level at 0.9993. If the price recoils, the initial target could be around 1.0105, where the pattern's resistance level lies.

The pair was capped from the 1.0055 level, then tested the support level around 0.9993. The resistance level around 1.0055 was tested three times, which increases the probability of the bearish breakout. If the price breaches support level at 0.9993, the first target for short investors could be around 0.9953, where the present local low stands.

© Dukascopy Bank SA

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