USD/CAD 4H Chart: Rising Wedge

Starting from mid-November the trading range of USD/CAD has been narrowing, thereby resulting in a formation of the rising wedge pattern on the four-hour chart.

Now, considering that the exchange rate has reached the formidable resistance level represented by the Jul high, the currency pair is expected to break out of the pattern by violating the support at 1.0549 in the nearest future. Then the first target for the price will be the weekly PP level at 1.0511, thought the sell-off is likely to last until the next support at 1.0452 (weekly S1 and 200-period SMA) is attained.