USD/CAD 1D Chart: Channel Down

For the last month the American Dollar is trading against the Canadian Dollar in a sharp descending channel. The pattern represents a rebound of the currency exchange rate from the upper trend-line of a preceding ascending channel. Even though the last week was abundant in released fundamental data, the pattern did not make a premature breakout. Accordingly, two scenarios are possible. In first, during the current week the pair is going to pave the way through the weekly PP at 1.2918 and R1 at 1.2976 to the resistance line. In second, the pair is projected to slip to the combined support level formed by the bottom edge of the channel, the weekly S2 at 1.2762 and the monthly S1 at 1.2758. Regardless of the outcome, the Loonie is not expected to leave the formation.