USD/CAD is trading in the red again after an important rally. Technically, the pair has validated a Falling Wedge reversal pattern, so it could continue higher after the current drop. The rate could come back down only to test and retest the broken obstacles before jumping higher.
The pair has turned to the upside again after the FOMC has decided to keep its monetary policy unchanged. USD/CAD was somehow expected to increase after showing a bullish divergence and after developing a Double Bottom pattern.
USD/CAD Falling Wedge Activated!
USD/CAD has escaped from the Falling Wedge confirming this reversal pattern. It has increased as much as 1.2957 level where it has found strong resistance. Now it has decreased and is retesting the 1.2832 former resistance.
The price could retest the lower median line (LML) and the Falling Wedge's resistance before moving higher towards new highs. USD/CAD should definitely jump way higher if the US Dollar Index increases in the upcoming period.
- USD/CAD Forecast!
The current drop could be ended soon, so retreat could help us to catch a new long opportunity. Stabilizing above 1.2850 makes USD/CAD very attractive for buyers. A false breakdown with great separation under the lower median line (LML) and through the black downtrend line could represent a buying signal.
