USD/CAD Price Analysis: Threatening to break out of triangle price pattern

USD/CAD is attempting to break out of a triangle price pattern and push higher. 
A decisive breakout would reaffirm 2024’s uptrend and begin a new more bullish phase.

USD/CAD is pushing up against the upper borderline of a large symmetrical triangle price pattern, threatening to break out to the upside. 

USD/CAD Daily Chart

A decisive breakout from the triangle would activate the initial upside target for the pattern at 1.3869, the 0.618 Fibonacci extrapolation of the height of the triangle from the breakout point higher. 

A decisive break would be one accompanied by a long green daily candlestick that broke clearly through the level and closed near its high or three green candlesticks in a row that broke through the level. 

USD/CAD has broadly-speaking been in an uptrend since the start of 2024. During that time it has risen from the 1.31s to the current 1.37s. Given that “the trend is your friend” the odds favor a continuation of the bull trend. 

Since April USD/CAD has been trading sideways in a narrowing range like a triangle. This is a type of continuation pattern. The probabilities favor price breaking out to the upside in line with the prior trend. The pattern has also completed five internal waves which is the minimum requirement for a triangle. 

The breakout, when it happens, is likely to be quite volatile. Traders should be warned that false breakouts are quite common. For more confidence a move above 1.3762 (May 8 high) should be used as confirmation. 

A decisive breakdown from the triangle would reverse the trend and suggest a move down to an initial target at around 1.3483. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-cad-price-analysis-threatening-to-break-out-of-triangle-price-pattern-202406071428