There is no doubt that the big picture of USDCAD is downward. Moreover, this downward trend has been lasting for more than a year. As the pandemic is still causing troubles, for the long term, the downward trend may continue. However, the short term of the price is still changing. Recently, an ascending triangle was completed. Ascending triangles leads to break up. As we can see, there is already one candle breaking through the upper trend line. The breakout range has not met the expectation of our ascending triangle now. Therefore, the upward trend will continue.
The ascending triangle is not the only signal for the price to go up. From the stochastics, we can see that the figure is going up now and already above the middle level. Also, The RSI is going up. Although the RSI seems to be overbought, the overbought condition can last for a while; some breakouts start from overbought/oversold. Now, the price line is way above the Ichimoku and moving average line. Angle is steep; break out is continuing. Let’s expect the breakout of USDCAD to meet the expectation level.
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