USD/CAD is trading within a narrow range, symmetrical triangle, and it could give us a great trading opportunity soon. The price needs a bullish spark to be able to extend its swing higher.
Personally, I believe that the price will breakout from this pattern after the US and Canadian data later today. The Non-Farm Payrolls is expected around 85K, the Average Hourly Earnings could increase by 0.3%, while the Unemployment Rate could remain steady at 6.7%.
On the other hand, the Canadian Unemployment Rate is expected to increase from 8.6% to 8.9%, while the Employment Change could remain deep in the negative territory at -43.5K. Good US data and poor Canadian figures should lift USD/CAD, while better than expected Canadian data and poor US numbers could push the rate down.
USD/CAD Symmetrical Triangle!USD/CAD is trapped within a symmetrical triangle, an upside breakout signals a larger upwards movement. Technically, the price is still expected to increase after escaping from two falling wedge patterns.
Unfortunately, a downside breakout from this triangle and through the Pivot Point (1.2780) could lead to a stronger sell-off, this scenario could invalidate the bullish one. The rate approaches the triangle's support, downside line as we speak, a false breakdown through it with great separation could bring a new upside momentum.
Trading Tips!Buying Signal - an upside breakout, jump, and stabilization above the triangle's resistance, somewhere above 1.2850 brings a long opportunity. A great one will be signaled by a valid breakout above the R1 (1.2875), if USD/CAD makes a new higher high.
Breaking above from this continuation pattern signals a potential growth towards R2 (1.2976), or higher to 1.3 psychological level.
Selling could be favored by a drop and stabilization under 1.2763 in the US trading session. Breaking down from this pattern could send the rate towards the S1 (1.2679) level.