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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