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27.01.202117:53 Forex Analysis & Reviews: USDCAD bullish breakout

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In our last analysis in USDCAD we warned bears that despite the new lower lows and lower highs they should be very cautious. All signs of a possible upside reversal were there. Price is now breaking above and out of the downward sloping wedge pattern.

Red lines- wedge pattern

Blue lines - bullish divergence

USDCAD is breaking to new short-term higher highs. Price has broken the bullish wedge pattern and is now trading above short-term resistance. The RSI was giving a bullish divergence and it warned bears the last couple of weeks that the downside momentum was weakening. We expect the upside bounce to continue towards 1.29-1.30 area.

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