AUD/CAD 1H Chart: Symmetrical Triangle

The Aussie was appreciating against its Canadian counterpart for three weeks, resulting in the formation of a channel up. This pattern was breached to the downside last week when the rate entered a consolidation period. The pair's decreasing trading range formed a symmetrical triangle with three confirmations on each side. Given the characteristics of a symmetrical triangle, the breakout should occur north. Thus, the base scenario favours the rate bouncing off the lower triangle boundary near the 0.9990 mark and appreciating until a resistance cluster set by the 55-, 100– and 200-hour SMAs circa 1.0020, at least. In case this level is breached, the pair is likely to surge up to 1.0060.