By definition, the descending wedge is an eventual reversal pattern. In this pair, we have made a pivot near the lows from 2019 at 1.2400 and have reversed higher.
Silver is probing a key downtrend line that has been in tact since mid 2017.
Last week we highlighted the NZDCAD which had the potential to rally. Today, we will highlight the EURCAD which is sitting on weekly trend line support.
A setup is simply “a setup.” For now, the AUDJPY trend is down, but the reversal pattern is developing in the AUDJPY.
The NZDCAD has a descending wedge into a 61.8% Fibonacci level. The Descending wedge already is a signal for a bullish reversal.
The AUDUSD has been under pressure the last week after reversing from the 2018-19 trend line (blue) but is coming to a confluence of support.
The BOC decision Wednesday may have a little more impact for the CADJPY considering the major confluence of resistance we hit today.
The DXY has rallied to the underside of the trend line but also back above the 200dma which does muddy the picture.