Forex: USD/CAD Technical Analysis – Triangle Still Taking Shape
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- USD/CAD Technical Strategy: Flat
- Support: 1.0975 (Triangle bottom, trend line), 1.0825 (38.2% Fib ret.)
- Resistance: 1.1149 (Triangle top), 1.1194-1.1223 (Feb 21, Jan 31 highs)
The US Dollar may be preparing to launch its next push higher against its Canadian counterpart. A period of consolidation since late January has taken the shape of a Triangle chart formation, a setup hinting at upside continuation. Clearing the Triangle top (now at 1.1149) exposes recent swing highs in the 1.1194-1.1223 area. Alternatively, a break below support at 1.0975 marked by the Triangle bottom and a rising trend line set from late October exposes the 38.2% Fibonacci retracement at 1.0825.
The Triangle setup is not actionable until confirmation is seen on a daily close above the pattern’s upper boundary. We will wait for that to materialize before looking for an attractive long trade setup.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com