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USD/CAD tests support cluster
Wed, 13 Sep 2017 13:15:53 GMT
Source: Dukascopy Bank SA
The Greenback continued its gradual appreciation against the Canadian Dollar on Tuesday, thus breaching the 100–hour SMA and the upper channel boundary. The market sentiment changed swiftly at 1.2190 when downside risks started to pressure the rate south.
The pair had reached a support cluster formed by the 55– and 100-hour SMAs at 1.2140 by mid-Wednesday, but showed some reluctance to break this mark. In case it is breached, no downside barriers (other than the bottom channel boundary) are restricting the Greenback from plunging down to its two-year low at 1.2068.
Nevertheless, this fall is unlikely to occur in the following 24 hours. It is more probable that the rate respects the boundaries of the junior channel and reverses in the 1.2120/00 territory.
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