Friday, October 28, 2016

USD/CAD Is Forming an Ascending Triangle

The USD/CAD situation hasn’t changed particularly during the past week – the pair continues forming a range slightly above the breakout of the resistance trendline (the red line), as you can see on the daily time frame screenshot.

However, on the four-hour time frame you can see a figure that resembles an ascending triangle. In order to be sure that it is one, however, it needs to reach the support trendline at least one more time, as it has reached its trendlines only three times.

All in all, I think that we could expect a new move to the upside, likely after a test of the trendchannel the pair broke above – which means that the trendline that served as a powerful resistance for five months will turn into a support.