Range Markets

On Friday the USD/CAD rate jumped on the release of fundamental news. Namely, the Canadian GDP came in lower than expected by the average forecast. That caused a jump up to the resistance of the 55-hour SMA and the upper trend line of a descending channel pattern.

However, on Tuesday the currency exchange rate had retreated to trade back near the 1.27 level. By the middle of Tuesday’s trading session it was expected that the currency exchange rate will reach the support of the 1.27 mark. That level has held the rate from falling three times since the middle of last week.

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