Market Condition: AUD/CAD Triangle Breakout
Target 1: 2X ATR at 1.0510
Target 2: 4X ATR at 1.0298
Invalidation: False Breakout Under .9980
AUD/CAD Daily Chart

(Created using Marketscope 2.0 Charts)
The AUD/CAD has advanced as 1019 pips from its September 2015 low at .9150. However, price action for the pair is currently seen consolidating in a triangle pattern. Traders looking for a continuation of the previous uptrend may look for a breakout above the current 20-day high at 1.0086. A breakout above this point would be considered bullish, and trend traders can look extrapolate potential pricing targets using ATR. Current ATR is valued at 106 pips. This places 2X ATR targets near 1.0298 and 4X ATR targets above 1.0510.
In the event of a false breakout, traders may look to exit any bullish positions if prices return inside of the pictured triangle. A 1X ATR stop would place this value near .9980. Conversely, if price breaks below support near .9821, any potential bullish orders may at least temporarily be suspended. In this scenario, traders may adjust their orders accordingly, while looking to trade in the markets chosen direction.
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