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USD/CAD Descending wedge

Posted on September 18, 2009 at 5:00 in Intraday Techs, Medium & Long Term Techs by César B. Leiceaga

The daily chart of USD/CAD shows how a perfectly descending wedge is forming. Technically speaking these kind of patterns warn a breakout in this case to the upside. This pattern would only be valid if there is a close above the 50SMA and the main bearish trendline.

Remember that bears are taking control of USD/CAD and there are no poweful signs for a reversal on this particular pair.

On shorter time frames 1,06 support level held yesterday and today’s 200SMA (1hour chart) cancelled any bullish implications for the moment.

Daily & 1 hour charts

César B.Leiceaga

Tags: cad, forex usdcad, usd, usdcad, usdcad technical analysis

2 Responses to “USD/CAD Descending wedge”

  1. on 18 Sep 2009 at 10:38 am1David P.

    Dear César,
    I read your blog few times a day!
    Thank you for your thought… I think the same. The current rise in USD/CAD is only a relief rally.
    “The bear takes control in USD/CAD”.
    I’m following this pair very closely. Please give your thought to this pair when there is any significant change.
    Thanks again,
    David

  2. on 19 Sep 2009 at 6:37 am2César B. Leiceaga

    Dear David P,

    Thank you for your comments, I really appreciate them.
    I will weekly update a USD/CAD technical analysis.

    Regards.

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