FX.co ★ USD/CAD Printed A Double Bottom Reversal Pattern

• USD/CAD has shown oversold signals. From where to buy it again?

The pair moves in a narrow range in the short term indicating exhausted sellers. Technically, the pair has shown some bullish reversal signals but is still premature to talk about a bullish reversal as long USD/CAD is traded under the immediate downtrend line.

USD/CAD seems undecided in the short term, the US and Canadian high impact data failed to bring a clear direction or to add high volatility. I still hope that the Canadian retail sales data could bring life on this pair later today.

Retail Sales and the Core Retail Sales are expected to increase by 0.1%. Better than expected data, a higher growth, could send the rate down again, while in line with expectations figures, or worse could boost the price.

USD/CAD Seems Oversold!

USD/CAD has tested and retested the Falling Wedge's downside line and the 150% Fibonacci line of the descending pitchfork and now has turned to the upside again. Breaking from this reversal pattern could bring a great long opportunity.

Personally, I believe that a valid breakout somewhere above 1.2832 suggests buying again as USD/CAD could advance higher in the upcoming period. You should be careful because a false breakout with great separation above the black downtrend line or above the R1 (1.2832) indicates a new bearish momentum.

• USD/CAD Trading Conclusion!

Buying Signal - a bullish closure above the R1 (1.2832) could validate the Falling Wedge and confirms further growth towards the 1.3000 psychological level. A larger upwards movement could be announced by a valid breakout above the median line (ML) of the major descending pitchfork.