CAD/HKD 4H Chart: Channel Up

The Canadian Dollar is trading against its Asian counterpart simultaneously in a medium-term rising wedge and short-term ascending channel. As regards the dominant formation, its lower support line practically coincides with the 55-hour SMA, while the other line represents an upper boundary of the junior pattern. As regards the latter, beginning of this week showed the pair is moving rather in a rising wedge than in the channel and this figure is about to be broken. However, since the support line of the junior wedge is backed up by the 20-hour SMA, the rate might make a rebound. Nevertheless, the surge above the weekly R1 at 6.2639 seems unlikely. In other words, this barrier is expected to be a point, from which the pair would receive an impulse strong enough to leave the junior formation.