USD/CAD analysis: Respects pattern
|On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price index data was released. The USD reacted by declining. On USD/CAD charts the event resulted in a decline to the lower trend line of the channel down pattern that has guided the rate since January 6. After a short period of sideways trading, on Thursday, the rate once again looked for support in the trend line.
If the pattern continues to hold, the rate could recover or decline by following the trend line. A potential recovery of the pair might find resistance in the weekly S2 simple pivot point at 1.2515. Higher above, the 50-hour simple moving average near 1.2550 could stop a decline, before the rate reaches the upper trend line of the channel down pattern.
Meanwhile, take into account that the lower trend line of the pattern might fail. A sharp decline might look for support in the 1.2450 mark. Afterwards, the weekly S3 simple pivot point at 1.2398 and the 1.2400 level could stop the pair.
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