USD/CAD moves above 200-hour SMA

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 72% 71% 1.39%
Shorts 28% 29% -3.57%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Neutral Sell Sell
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

The bullish market sentiment prevailed on Tuesday's session, resulting in a breakout of the 55– and 100-hour SMAs and the weekly PP. The 200-hour SMA, however, proved to be a strong barrier that reversed the rate's direction south. The price rebounded from the shorter-term SMAs early on Wednesday and resumed its appreciation.  

Technical indicators favour another reversal that is likely to be a short-term correction against the general movement up. By and large, the channel is not expected to hold any longer; thus, the US Dollar may reach and bounce off the 1.2500 area—an intersection of the 55– and 100-hour SMAs—and remain near 1.26.

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