A false break of the rising wedge has just occurred, and price action has now gone back into the wedge zone. The upper bound of the rising wedge was retested through a retracement on the down slope. I can see price trending down all the way to S1 before seeing signs of reversal at this support slope. Note that as price trends down towards S1 the 1.00 psychological...
Price is currently range bound towards the end of a long term ascending triangle. I take a bullish stance here since the ascending triangle presents a bullish bias however, I will not place any trades until price moves closer to the floor of the range.
Price has found itself contained in the ascending triangle with more immediate movement expected to test the 109.021 recent low which is also the 0.382 retracement level for the June 2015 to May 2016 movement. A reversal at this point will see the formation of a double bottom. This level presents a potential bullish entry point with reasonable stop losses.
As we are gearing up towards the NFP a bearish USD bias has been adopted, with USDCAD presenting a potential bearish trade in the short term. A descending triangle appears to be forming after a wick testing the trend line T1 closed below - indicating bearish movement. Confidence in a bearish price movement down towards the 1.34 area will increase should price...
