CAD/HKD 4h Chart: Triangle

Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Sell
RSI (14) Neutral Sell Neutral
Stochastic (5; 3) Buy Sell Sell
Alligator (13; 8; 5) Buy Buy Neutral
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

The Canadian Dollar is forming a new pattern against the Hong Kong Dollar. The reason for that is the fact that the pair recently broke out to the upside out of a triangle pattern, which dictated the pair's movements throughout May and half of June. The new pattern is most likely going to guide the currency exchange rate in a medium term surge. However, the theory of a rate continuing in the direction of a breakout need to be strengthened. For example, the SWFX sentiment shows that the pair is clearly overbought, as 74% of open positions are long. This means that a retreat might take place first. A short term consolidation might reveal the lower border of the new trend.

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