Saturday, March 31, 2018

The USD/CAD Prognosis For The Next Week

We can’t ignore the interesting development of the USD/CAD pair with the caveat that on Monday (3rd April), which is a holiday, we can hardly expect big movements on the market.

The pair began moving north and for the moment it is developing within a perfect trend channel with a height at its base exactly 855 pips.

If we suppose that the market will follow the trend lines then we should expect a test of the resistance trend line (in blue), a renewal of the depreciation to the support trend line of the channel (in red) and a possible breakout in order for the depreciation to continue toward the next support trend line (in blue).

The alternative scenario is a breakout above the resistance trend line (in blue) and a rally to 1.3750 – 1.3800.