USD/CAD – Bullish Breakout from a Triangle Pattern

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The USD/CAD has been consolidating since the end of January. Let’s take a look at the charts to assess today’s breakout from this consolidation.

There has been a descending triangle forming after the USD/CAD made a high on the year in January just under 1.28. Since then, it has held above the 1.2350 support. Today, price action broke the triangle resistance, signaling bullish continuation.

If there is a pullback, a hold above 1.25 keeps the bullish outlook. A break below 1.25 opens up the 1.2350 support again, which will be more vulnerable after a false break to the upside.

If price does hold above 1.25, the pressure will be on the 1.28 handle. Above that, there is room towards the 2008-2009 highs in the 1.30-1.3060 area.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.