USDCAD - Looking Heavy, Channel Line Provides Reference
- Yesterday’s USDCAD rally and roll starting to look like a lower high
- Channel development on 1-hr timeframe; multiple inflection points
- IF a breakdown below channel support line occurs, looking at 12250 – 12100 zone
On Tuesday, I brought to attention a triangle formation on the hourly chart. This pattern triggered to the upside, but quickly found resistance at 12697 before turning sharply lower. The high made yesterday may very well turn out to be a lower high from the peak at 12798 set on 1/30. Channel support with multiple touches (multiple touches = greater importance) now provides a reference point for a short entry on a continuation towards the 12250-12100 target zone. I’ll be watching for a move under Monday’s low,12427, as confirmation.
USDCAD 4-hr: Dec ’14 – Present
--- Written by Paul Robinson, DailyFX Research
To have updates and the weekly newsletter delivered to your inbox, you can sign up for DailyFX’s ‘Inside the Lines’.
For intra-day updates, I can be found on Twitter: @DailyFXLines
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.