Descending triangle pattern.
Updated
I think there's a descending triangle forming on the USDCAD which coincides with the head and shoulders pattern in my analysis on the DXY. This would indicate trend continuation to the downside on higher timeframes.
The pair has retested support at the 1.263 level several times forming the flat bottom, while also showing lower lows creating the hypotenuse of the triangle pattern. In addition, the highest low in the pattern has retraced to a major fib level at 38.2% before pushing down.
On lower time frames, it's possible we could see a small move to the upside for some short term buys to form a new lower low, but given my idea on the strength on the dollar im reluctant.
Let me know thoughts below.
*Im not an expert*
My analysis on DXY supporting this one:
The pair has retested support at the 1.263 level several times forming the flat bottom, while also showing lower lows creating the hypotenuse of the triangle pattern. In addition, the highest low in the pattern has retraced to a major fib level at 38.2% before pushing down.
On lower time frames, it's possible we could see a small move to the upside for some short term buys to form a new lower low, but given my idea on the strength on the dollar im reluctant.
Let me know thoughts below.
*Im not an expert*
My analysis on DXY supporting this one:
Trade active
Trade closed: target reached
A very nice profit
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