USDCAD has been travelling in an up trending channel since mid 2018.
There is an outlying zone of support and resistance which price has moved into and out of fairly quickly.
Recently price has moved into the outer support zone, but this time has spent far more time consolidating. Is this a prelude to a breakout ?
We can see the present daily price action has formed two inverted hammers , indicating price rejection beneath resistance of
1. 200 and 50 MAV
2. Monthly R1 Pivot
It seems likely that price in the coming week may be contained yet again by the lower support zone , and the possibility of a channel breakout thereafter.
Note however, within this channel on a weekly basis, every time price broke the 200W MAV, movement followed to the top of the channel.
There is an outlying zone of support and resistance which price has moved into and out of fairly quickly.
Recently price has moved into the outer support zone, but this time has spent far more time consolidating. Is this a prelude to a breakout ?
We can see the present daily price action has formed two inverted hammers , indicating price rejection beneath resistance of
1. 200 and 50 MAV
2. Monthly R1 Pivot
It seems likely that price in the coming week may be contained yet again by the lower support zone , and the possibility of a channel breakout thereafter.
Note however, within this channel on a weekly basis, every time price broke the 200W MAV, movement followed to the top of the channel.