USDCAD forms a descending triangle pattern

By | May 21, 2020
InstaForex
USDCAD forms a descending triangle pattern

Relevance up to 16:00 UTC–5

USDCAD since mid March has been making lower highs starting from 1.4343, while the last lower high is at 1.4141. At the same time price is pulling back towards 1.3850 and so far we have seen 3 lows in the same price area.

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Red lines – triangle boundaries

USDCAD has formed what we call a descending triangle pattern. Price so far respects support and this increases the chances for another bounce towards the upper triangle boundary. Usually this kind of formations break to the downside, but unless we see a clear break down of 1.3850 we should not ignore bulls. Key resistance is at 1.4120.

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

Performed by Alexandros Yfantis,
Analytical expert
InstaForex Group © 2007-2020

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