- USD/CAD is still expected to increase after escaping from two Falling Wedge patterns!
USD/CAD is trading within a narrow range, symmetrical triangle, and it could give us a great trading opportunity soon. The price needs a bullish spark to be able to extend its swing higher.
Personally, I believe that the price will breakout from this pattern after the US and Canadian data later today. The Non-Farm Payrolls is expected around 85K, the Average Hourly Earnings could increase by 0.3%, while the Unemployment Rate could remain steady at 6.7%.
On the other hand, the Canadian Unemployment Rate is expected to increase from 8.6% to 8.9%, while the Employment Change could remain deep in the negative territory at -43.5K. Good US data and poor Canadian figures should lift USD/CAD, while better than expected Canadian data and poor US numbers could push the rate down.
USD/CAD Symmetrical Triangle!
USD/CAD is trapped within a symmetrical triangle, an upside breakout signals a larger upwards movement. Technically, the price is still expected to increase after escaping from two falling wedge patterns.
Unfortunately, a downside breakout from this triangle and through the Pivot Point (1.2780) could lead to a stronger sell-off, this scenario could invalidate the bullish one. The rate approaches the triangle’s support, downside line as we speak, a false breakdown through it with great separation could bring a new upside momentum.
Buying Signal – an upside breakout, jump, and stabilization above the triangle’s resistance, somewhere above 1.2850 brings a long opportunity. A great one will be signaled by a valid breakout above the R1 (1.2875), if USD/CAD makes a new higher high.
Breaking above from this continuation pattern signals a potential growth towards R2 (1.2976), or higher to 1.3 psychological level.
Selling could be favored by a drop and stabilization under 1.2763 in the US trading session. Breaking down from this pattern could send the rate towards the S1 (1.2679) level.
The material has been provided by InstaForex Company – www.instaforex.com
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