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USD/CAD Trading in a Falling Wedge Pattern

USD/CAD fell from last week's high of 1.0960 to 1.0890. Then during the 6/10 session, price rallied back above 1.09 and was testing the 1.0920 level.



(usdcad 1h chart)

This represents a test of the falling wedge pattern that formed in the past week. A break above 1.0930 would clear the pattern and the moving averages (200,100, 50) in the 1H chart. This could be a bullish continuation signal that opens up teh 1.0960 high up to the 1.10 handle. In this scenario, the 1H RSI should also push above 60, and preferably 70 to reflect the revival of bullish momentum.

Failure to push above 1.0930 however keeps the pair in a bearish mode, and a break below 1.0890 can open up the 1.0814-1.0825 lows. Below that, the 200-day SMA awaits near 1.0775.