The USD/CAD made a bullish breakout this week from a descending triangle. However, this breakout is now being invalidated. Let’s take a look at the chart.
The triangle breakout in the 4H USD/CAD chart is now turning into a bearish attempt pressuring the 1.2350-1.24 triangle consolidation support area. After a false breakout to the upside, the support is vulnerable. A break below 1.2350 opens up the 1.20 handle.
If price rebounds above 1.25, the bullish outlook is still in sight, not because of this week’s bullish breakout, but because of the prevailing uptrend. The 1.28 high will be in sight, and above that the 1.30-1.3060 area, 2008-2009 highs will be sight.
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