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USD/CAD Is Closed In A Symmetric Triangle Formation And Anticipates More

ByAdmirals
Published 01/08/2013, 06:14 AM
Updated 01/31/2022, 02:45 AM
Time of analysis: 9:30 am CET

USDCAD, after creating a huge bearish gap and covering it again last Friday, has been staying in the side trend for the past two days. After investors managed to close the gap, they started to buy Canadian Dollar according to the long term trend. The bearish movement stopped on 4th of January and the price started to form a flag (green lines), that indicated a trend continuation sentiment. As it was predicted, sellers managed to push the price down and they created a channel down formation (blue lines). The fall was stopped on a red line connecting higher lows and this line, from that moment, will act as the strongest support for buyers. In the mid-term, the price is forming a symmetric triangle which was confirmed in the morning by the creation of a local top on 0.9880, which from now on acts as a minor resistance. Both lines of that triangle will now act as major S/R levels and should be watched very carefully. A breakout can be very sharp and can create a nice momentum helping investors to reach new tops or new bottoms.
USD/CAD
A down movement is more likely as that is what the long-term trend is. What is more, the support line is constantly under pressure and recently did not create any major reversal. The situation is different with the upper line where reversals are strong and more significant, indicating that more investors are willing to sell than to buy.

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