Baxia Markets
September 14, 2021

A Breakout Is Approaching USDCAD

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As can be seen, the price has been through a long downward trend since Aug 20th. The downward trend started with a sharp slope, followed by some mild waves. Finally, it reached 1.249 on Sep 3rd, which was also a support point. After this support point, the price soon went up; however, the upward trend stopped around the 61.8% Fibonacci level. What’s the next step of the price line?




The price has been making a pennant since Sep 7th. Pennant pattern is a breakout signal; the breakout direction is the same as the previous trend. According to the past, the breakout direction is most likely to be downward. 


Recently, MACD is still showing a bearish signal. Although the Ichimoku still overlaps the price line, the cloud is going up now, which is a bearish signal. The pennant is now about to end. Let's keep our eyes on the price line, wait for the breakout.


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