Patterns: CAD/JPY, GBP/CAD
|CAD/JPY 4H Chart: Stranded between SMAs
The Canadian Dollar has been moving in a junior ascending channel against the Japanese Yen. The currency pair bounced off the lower boundary on March 19 and has since surged.
The exchange rate has tested the upper border of a dominant descending channel and could be set for a breakout. The CAD/JPY currency pair was stranded between SMAs at the time of this analysis. The 55– hour simple moving average was restricting the pair from making further movement north. While the 100– hour SMA was providing support.
As for near future, if the aforementioned breakout occurs, the currency exchange rate is likely to reach a potential target at 87.00 set by the monthly pivot point.
GBP/CAD 4H Chart: Breakout from SMAs
The British Pound has been trading in a dominant ascending channel against the Canadian Dollar since September. The exchange rate neat movement in this channel was interrupted in mid-March when a reverse south occurred after reaching a resistance set by the monthly pivot point near the 1.8457 area.
The GBP/CAD currency pair has since been moving in a junior descending pattern. Meanwhile, the pair has breached both the 55– and the 100– hour SMAs and the upper boundary of the junior channel.
Everything being equal, the currency exchange rate likely to continue moving in the channel down until it reaches the lower boundary of the dominant channel.
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