USDCAD (Daily): The price BROKE and RETESTED the FALLING WEDGE!
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TECHNICAL ANALYSIS:
The USDCAD is actually giving us a nice long opportunity, as we can see from the chart I drew, the price has been moving following a really strong downtrend since the end of March 2020.
Once the price reached an important support zone at about 1.29890, it bounced on that creating a nice trend correction (we got many confirmations about this correction, the RSI value was around 25, the price was oversold and it closed the day on the support zone with a pin bar, clear sign of weakness to carry on the same trend.
The price reached and retested the resistance zone at about 1.34000, falling down creating a clear Falling Wedge Pattern. As we can see from the chart, the price has been rejected many times from the dynamic resistance level of the pattern, this is a possible sign that the pattern is perfectly working.
The 21st of December, the price finally broke the dynamic resistance level, bouncing on a daily resistance zone, reaching and retesting (as expected) the weekly support zone (a down pin bar around the support could be a sign of uncertainty of the market and eventually a market's inversion).
CONCLUSION:
The USDCAD is definitely in an interesting period, the next days are so important to understand if the falling wedge pattern is confirmed and be ready to entry long in this trade.
Volumes are slowly increasing, the price retested an important support zone and the RSI convergence could be a strong sing of inversion.
Would I open any long position? Not today! I'd prefer to wait the next 1-2 days to get my last confirmation before to open any trade, but the opportunity is absolutely great!
TECHNICAL ANALYSIS:
The USDCAD is actually giving us a nice long opportunity, as we can see from the chart I drew, the price has been moving following a really strong downtrend since the end of March 2020.
Once the price reached an important support zone at about 1.29890, it bounced on that creating a nice trend correction (we got many confirmations about this correction, the RSI value was around 25, the price was oversold and it closed the day on the support zone with a pin bar, clear sign of weakness to carry on the same trend.
The price reached and retested the resistance zone at about 1.34000, falling down creating a clear Falling Wedge Pattern. As we can see from the chart, the price has been rejected many times from the dynamic resistance level of the pattern, this is a possible sign that the pattern is perfectly working.
The 21st of December, the price finally broke the dynamic resistance level, bouncing on a daily resistance zone, reaching and retesting (as expected) the weekly support zone (a down pin bar around the support could be a sign of uncertainty of the market and eventually a market's inversion).
CONCLUSION:
The USDCAD is definitely in an interesting period, the next days are so important to understand if the falling wedge pattern is confirmed and be ready to entry long in this trade.
Volumes are slowly increasing, the price retested an important support zone and the RSI convergence could be a strong sing of inversion.
Would I open any long position? Not today! I'd prefer to wait the next 1-2 days to get my last confirmation before to open any trade, but the opportunity is absolutely great!
