USD/CAD plunges mid-session

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 66% 67% -1.52%
Shorts 34% 33% 2.94%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Buy Neutral
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Sell Sell Sell
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

On Tuesday, the US Dollar continued to trade against its Canadian counterpart in an ascending triangle. The rate was fluctuating around the 55– and 100-hour SMAs, failing to demonstrate a distinctive move either direction. Thus, the market was calm before important fundamentals mid-session. The BOC Monetary Policy Report and Rate Statement were released at 1400GMT and the pair responded accordingly with a 42-pip fall in one minute. This move pushed the rate in the oversold region, suggesting that a reversal to the upside is a very strong possibility. There are no resistances up to the lower triangle boundary circa 1.2900; thus, a possible stopping point is yet unclear. It is likely that no massive leaps occur in the upcoming hours, so the US Dollar could trade in the 1.2850/1.2880 area by Thursday evening.

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