Sasha Singh
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USDCAD : Finds Support and Might Surge Again !!

USDCAD pauses its losses as Statistics Canada releases a report related to Raw Materials Price Index and Industrial Product Price Index. The official data showed that the RMPI declined 1.8% in September more than the economist’s estimate for decline of .8% and largely as a result of lower prices for crude energy products. On the other hand the IPPI declined by .4% in September worse than the economists expectations for no change and mainly because of the lower prices for energy and petroleum products.

USDCAD : Daily Chart

On the daily chart, the pair earlier broke down below the support at 1.1223 and most probably it will find support at 1.1130. The pair seems supported now also as rising support trend line and the 50 day SMA continues to be key support areas.

USDCAD : 4 Hour Chart

On the 4 hour chart, the pair seems to be following a falling wedge pattern which gives a bullish signal and currently it is testing the support at 1.1135 or from the support trend line of the wedge. If it breaks below the falling wedge, the next support it may find at 1.1090. If it continues to consolidate within the falling wedge, it might finally surge from the resistance trend line of the wedge.