USD/CAD 1H Chart Emerging Pattern: Channel Down

by Admin

USD/CAD has formed a Channel Down pattern on the 1H chart. The pattern has 53% quality and 49% magnitude in the 76-bar period.

The pattern began on the 1st of April when the pair peaked to 1.0183; currently it is trading at the 20-bar SMA/daily pivot (PP) at 1.0135. Trading volume seems to be mildly increasing in the length of the pattern. Long traders, who expect that pair will continue moving towards pattern’s resistance, could focus on the Cluster of levels at 1.0152/64 (Bollinger band, 200-bar SMA, pattern’s resistance and daily pivot (R1)), 20-day SMA/daily pivot (R2) at 1.0195/96 and daily pivot (R3) at 1.0225.

Technical indicators on aggregate point at depreciation of the pair it should continue following pattern’s, downward sloping, trend and is likely to start depreciating before hitting pattern’s resistance. Short traders could focus on the Bollinger band at 1.0114, daily pivot (S1)/pattern’s support at 1.0102/096, daily pivot (S2) at 1.0073 and 100-day SMA/daily pivot (S30 at 1.0052/41.


AUD/USD 1H Chart

Emerging Pattern: Channel Down

Even though the pattern is quite short in duration, only 41 trading hours, the price has already confirmed both boundaries of the Channel Down several times, meaning that the bearish trend-lines are likely to remain topical for now and guide the pair downwards. Market sentiment is negative towards the price as well, being that 71% of traders are currently holding short positions on AUD/USD.


USD/MXN 1H Chart

Emerging Pattern: Channel Down

USD/MXN’s bias is strongly bearish at the moment. The currency pair has been trading within a falling range for more than 200 hours and right now it is in the upper part of this range. Moreover, the price is below the 200-bar SMA and an overwhelming majority (73%) of market participants are short on USD.


GBP/NZD 1H Chart

Emerging Pattern: Channel Down

Just as the previous currency pairs, this one is also in a down-trend, but longer than the others. From the pattern’s perspective, GBP/NZD is set to decline further, it has just encountered a confluence of resistances around 1.8125. However, market participants are optimistic with respect to the Pound, since three out of four traders have decided to enter the market with buy trades.