18.01.202118:16 Forex Analysis & Reviews: USDCAD breaks out of a downward sloping wedge pattern

USDCAD is trading at 1.2760. Price has broken the upper wedge boundary at 1.2730. It is important for bulls to stay above this break out level and continue making higher highs and higher lows. If this break out is confirmed, then we might see a big upward move in USDCAD towards 1.30-1.33.

Exchange Rates 18.01.2021 analysis

Red lines - bullish wedge pattern

Blue line- Bullish RSI divergence

USDCAD is moving higher. Last time we analyzed USDCAD we mentioned this bullish wedge pattern and the bullish RSI divergence. All signs were there for a move higher. Bears were warned. Price can now continue much higher towards 1.30-1.33. Bulls need to hold price above 1.2730-1.2750 on a weekly basis otherwise this would not be a real break out. Back testing the upper wedge boundary is usually seen after breakouts. So a pull back to back test 1.2720-1.2730 is very possible the next couple of days.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Alexandros Yfantis,
Analytical expert
InstaForex Group © 2007-2021
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