As I had assessed in my last post about the USD/CAD pair>>> , it broke out below the support of the horizontal range between 1.2922 – 1.2670 (in blue) and reached its limit.
However, the pair has not been able to break out below the zone around 1.2400 - 1.2460 for three weeks. This week it closed at 1.2493.
I expect the pair to renew its move north toward the diagonal trend line of resistance (in red).
The alternative scenario is for depreciation toward the support trend line which is also marked in red.
I think that we should watch the pair’s charts for the formation of a wedge which would give us the opportunity to open good positions once there is a breakout above or below that wedge.