Forex: USD/CAD Technical Analysis – Triangle Setup Favors Gains
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- USD/CAD Technical Strategy: Flat
- Support: 1.0962 (Triangle bottom), 1.0945 (trend line)
- Resistance: 1.1175 (Triangle top), 1.1194-1.1223 (Feb 21, Jan 31 highs)
The Canadian Dollar has entered a period of consolidation against its US counterpart but the outlines of a Triangle chart formation argue in favor of upside continuation. A break above Triangle top resistance at 1.1175 aims for swing highs in the 1.1194-1.1223 area. Triangle support is now at 1.0962, a barrier reinforced by a rising trend line at 1.0945.
The upside implications of the Triangle formation are unconfirmed until prices convincingly break above the pattern’s topside boundary on a daily closing basis, making a long trade premature at this stage. We will stay aside for now but monitor the pair for entry opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.