I’ve been looking for a bottom in the Canadian Dollar recently.Following the June selloff, it has traded kind of sideways for the past weeks, gravitating around the 8600 level (the green line on the chart).MACD appears to have bottomed, but hasn’t yet given a bullish crossover.
I’m not a traditional chart pattern expert (I’ll have to dig out my copy of Edwards and McGee), but the current pattern.I drew trendlines across the highs and lows to show this pattern.The standard explanation for a falling wedge is that the downtrend sees decreasing participation as it goes on, and eventually ends in an upside breakout.
I’ll be watching for both a bullish MACD crossover and a breakout of the upper line of the wedge to start a rally.Holding the 8600 area should embolden potential bulls.
Do any readers have any thoughts on this?
Falling Wedge for the Loonie?
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