The USD/CAD is currently testing the upper boundary of a symmetrical triangle pattern on the daily chart. A breakout above this level would confirm the uptrend that has been in place since the beginning of 2024 and signal a potential bullish phase ahead.
If the breakout occurs, the initial target for the pattern is at 1.3869, which is calculated using the Fibonacci extrapolation of the triangle’s height. A decisive breakout would involve a strong bullish candlestick closing above the resistance level.
The USD/CAD has been steadily climbing from the 1.31s to the current 1.37s since the start of the year, indicating a strong upward trend. The current sideways trading within the triangle pattern suggests a continuation of the bullish trend, with a breakout to the upside being the most likely scenario.
Traders should be cautious of false breakouts, as they are common in volatile market conditions. A move above 1.3762 would provide confirmation of a breakout and increase confidence in the upward momentum. Conversely, a breakdown from the triangle could signal a reversal of the trend, with a potential target at around 1.3483.