The price is once again testing the resistance level of this ascending triangle. The price has been unsuccessful so far on breaking this level but as the triangle becomes more and more narrow the price may soon have to make a move. The RSI is currently in a great position for a bullish push, I believe the price would break out the resistance and them make its way back down to retest the broken resistance, but we will have to wait and see what happens. I will keep everyone updated on this pair over the coming days.
Comment
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With the Fed confirming the second rate hike this year and showing that there will be a total of 4, the USD looks much more bullish. I would think that the price would breakout the top of this ascending triangle.
Good analysis, I have same setup, i believe price will break and fill in that large wick before coming to retest then going up to retest 1.31
JohnnyPurtoy98
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@ftonialfred, Yeah I also believe this would be the case, but there is always a possibility that what @Jamal92 said below could happen as well.
Jamal92
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Its been tested for 2 weeks straight. I feel there will be a fatigue and with the DXY showing signs of a reversal. I can only see UC falling.
JohnnyPurtoy98
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@Jamal92, This is also possible as if the price breaks out the support level of the ascending triangle then we could see bearish moves, as the price will gain bearish momentum. I will keep this post updated.
ftonialfred
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@JohnnyPurtoy98, @Jamal92 Yes, I see USD weakening. There is always a possibility of price going down thats where timing of entry and risk management comes in. However, I also see the Canadian Dollar weakening as their economy has been doing very bad so far.