The Greenback has remained in a relatively stable position against the Canadian Dollar for the second consecutive session.
The pair tried to edge lower mid-Friday; however, the combined resistance of the 55-hour SMA and the monthly PP circa 1.2820 stopped any further attempts.
It is expected that the former could guide the pair during the following hours. Technical indicators even suggest that further surge might be due. This up-move, however, is unlikely to be sustainable for long, as the five-month high of 1.2907 should provide strong resistance.
Given that the southern side is guarded by several support areas, a more likely like scenario for this session could be either a movement sideways or the aforementioned appreciation.
The pair tried to edge lower mid-Friday; however, the combined resistance of the 55-hour SMA and the monthly PP circa 1.2820 stopped any further attempts.
It is expected that the former could guide the pair during the following hours. Technical indicators even suggest that further surge might be due. This up-move, however, is unlikely to be sustainable for long, as the five-month high of 1.2907 should provide strong resistance.
Given that the southern side is guarded by several support areas, a more likely like scenario for this session could be either a movement sideways or the aforementioned appreciation.
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During the first half of Thursday’s trading session the US Dollar confirmed the location of a previously speculated support line against the Canadian Dollar. Combining that with the previously known location of a larger channel down pattern, a hypothesis can be made.
The rate is about to get squeezed in a triangle, whose resistance will be the one of the mentioned channel down pattern, and the support will be provided by the just reconfirmed support line.
Taking into account the direction of the larger channel, it is forecast that the breakout from the triangle will happen to the downside.
The rate is about to get squeezed in a triangle, whose resistance will be the one of the mentioned channel down pattern, and the support will be provided by the just reconfirmed support line.
Taking into account the direction of the larger channel, it is forecast that the breakout from the triangle will happen to the downside.
Despite higher volatility that was apparent mid-Tuesday, the US Dollar failed to reach the five-month high of 1.2907. During this time, the pair was supported by the 55- and 100-hour SMAs.
The given support was breached mid-session when sluggish US CPI data started pressuring the rate southwards. The next support is the weekly PP and the 200-hour SMA circa 1.2785.
In case downside risks continue to prevail during the following hours, the pair might not go as low as this level but reverse near 1.28. It is expected that the Greenback could still push towards 1.2907.
Meanwhile, the Federal Reserve is set to release various fundamentals and have a press conference at 1900GMT and 1930GMT, respectively. It is likely that these fundamental events have impact the market.