Range Markets

The US Dollar on Tuesday morning was heading lower against the Canadian Dollar until it hit what seemed to be the support line of the most junior and almost horizontal pattern.

The resulting surge forced the Buck into the resistance of the medium term channel down pattern near the 1.2760 mark. That resistance in a combination with the close by monthly pivot point at the 1.2747 level and the 55-hour SMA at 1.2758 created a complicated situation. The rate could be squeezed in until the end of the day.

However, the resulting break out would have ranges of at least 50 base points to both sides.