USD/CAD - USD/CAD Broke the Upward Sloping Channel - 11/02/2016 (GMT)

The USD/CAD pair recorded a new 7-month high and challenged the 1.3433 price level. The price was developing within an upward sloping channel over the last six months and broke it to the upside during Friday’s session.

From a technical point of view, the commodity pair surpassed the 50-weekly SMA and now is trading near the 1.3400 psychological level. Going to a lower timeframe the price is moving well above the three SMAs (50-SMA, 100-SMA and 200-SMA), however, over the last five days, is developing within the 1.3350 support level and the 1.3430 resistance level. If the price rises above the latter resistance level, it will open the door for the 1.3590 barrier. An alternative scenario is a penetration of the 1.3350 obstacle that will expose the price to the downside until the 1.3180 support level which coincides with the 50-daily SMA. Furthermore, the MACD oscillator is ready to cross its trigger line to the downside while the RSI indicator is sloping downwards.