USD/CAD has formed a Channel Up pattern on 4H chart. The pattern has 64% quality and 100% magnitude in the 199-bar period.
The pattern started when the pair started appreciating after dipping to 0.9633; currently it is trading at daily pivot (S1) at 0.9989. Trading volume trend is neutral. Technical indicators on aggregate point at appreciation of the pair on 4H horizon suggesting that it should attempt to advance above parity condition once again. Current market sentiment is relatively bullish as 59% of all positions on the pair are long. In addition, 70% of all pending in 100 pip range from current market price are to go log. orders on the pair Long traders could focus on the parity condition/daily pivot (PP) at 1/1.0012, daily pivot (R1)/Bollinger band at 1.0040/45, daily pivot (R2) at 1.0062 and daily pivot (R3)/pattern’s resistance at 1.0091/97.
Technical indicators on aggregate point at depreciation of the pair on 1W horizon suggesting that we might see a bearish correction some time soon. Current market sentiment is bearish as 62% of traders hold short positions on the pair expecting its depreciation. Short traders could focus on the 20 bar SMA at 0.9979, daily pivots at 0.9961 (S2) and 0.9939 (S3) and pattern’s support/Bollinger band at 0.9921/12.