USD/CAD Price Analysis: Consolidating in a symmetrical triangle pattern
- USD/CAD's 4-hour chart shows the pair is trapped in a symmetrical triangle.
- The outlook would turn bullish if the triangle is breached to the higher side.
USD/CAD is currently trading in the red near 1.42, having found offers near 1.4260 an hour ago.
The pair is trading in a contracting triangle, popularly known as the symmetrical triangle, as seen on the 4-hour chart.
A break above the top end of the triangle at 1.4260, would confirm a breakout and open the doors to 1.4349 (triangle high) and 1.4382 (61.8% Fibonacci retracement of 1.4667/1.3921).
A triangle breakout would also confirm an upside break from the falling channel that has been in place since March 18.
Alternatively, a symmetrical triangle breakdown would imply a continuation of the decline from 1.4667 and may yield a sell-off toward 1.3921 (March 27 low).
4-hour chart
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Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
