USD/CAD 4H Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA

USD/CAD recoiled from its nine-month low around 0.9795 forming a rising wedge formation on the 4H chart. The pattern has 80% quality along with 87% magnitude in a 32-bar period.

US Dollar appreciated against Canadian Dollar to 1.0062, then decreased to the support level at 1.0001. Pair's bias is neutral on 4H chart, which decrease a possibility of massive impulse after a breakout of the level. Long traders may focus their attention on the support level around 1.001. If the price recovers, the initial target for bulls might be around 1.0062, where the previous local high lies.

RSI indicator reached its 70% critical level, showing that the pair is overbought and a correction is expected. Short traders might pay their attention to the key level at 1.001. If the price breaches this level, the first aim could be around 0.9333 where the SMA200 indicator stands.

© Dukascopy Bank SA

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