Baxia Markets
By
July 29, 2021

USDCAD Is Building Falling Wedge

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The price of USDCAD had risen since May 18th. The upward movement had lasted two months during the rising movement. The price had gone steeper and steeper; however, the upward trend stopped suddenly on Jul 19th, which shocked many traders. The downward trend was also steep; it went down 2.63% during eight days. 

 

 

As can be seen, the falling waves have been making a falling wedge. The falling wedge is a bullish signal, so will the price go up after the wedge finishes?

 

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The second wave of the falling wadge started from an extreme Bollinger band shrinking; the price line broke down again, giving support pressure to the price. The standard deviation also goes up, which means the fluctuation has not stopped yet; the price still has room to go. The bulls power reached the bottom recently; a bounce-back may take place. Although the moving averages do now show bullish signals, they are lagging indicators.

 

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