Baxia Markets
September 20, 2021

USDCAD: Breakout Pennant

technical analysis top header -01


As can be seen from the chart, the pennant pattern had been forming for ten days. Now, the price finally finished the pennant and broke out of the trend line, with the expected direction. Also, the price broke out of the Bollinger Bands at the same time. It looks like strong support pushes the price all the way up. How far will it go?




The price already moved on top of the Ichimoku cloud; however, the cloud moved up as well, which is considered a bearish signal. Although the MACD still shows a bullish signal, Stochastics and Williams R% go beyond the overbought line. The overbought situation could last for a while; however, it’s very unstable. We should not trust an unsafe condition. Besides, the price broke out the Bollinger bands. As we know, the Bollinger Bands always push the price towards the middle line. The price may remain high; however, we should pay more attention to the price.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

forex, trading conditions, technical analysis, trading indicator

Subscribe by Email