© Dukascopy Bank SA
Just recently USD/CAD has formed a triangle on a 1H chart. However, it is now just a matter of several hours when either the up-trend or the down-trend line gives in and we observe a break-out. Considering the type of the pattern, i.e. the one that skews the chances towards continuation of the previous move, the support at 1.0379 is likely to fall. On the other hand, there are reasons to believe in a different scenario. Firstly, daily indicators are more bullish than bearish. Secondly, an overwhelming majority of SWFX traders, namely 71% of them, are expecting a rally, being that they hold long positions on the U.S. Dollar.
© Dukascopy Bank SA