USD/CAD imminent breakout

The USD/CAD pair was edging higher at the time of writing as the Dollar Index rebounded. As you already know from my analysis, the price maintains a bullish bias despite temporary declines. The pair is still trapped within a range pattern. Still, its failure to make a new low signals strong upside pressure.

Fundamentally, the greenback received a helping hand from the US economic data. The Flash Manufacturing PMI was reported at 57.5 points versus 55.9 expected, Flash Services PMI jumped from 51.2 to 56.7 points, far above 52.9 expected, while the CB Consumer Confidence came in at 110.5 versus 109.9 expected.

USD/CAD is trapped within a range pattern between 1.2650 and 1.2796 levels. In the short term, it has developed a triangle pattern. Now, it challenges the triangle's resistance. A valid breakout of it may announce a breakout through the range's resistance as well.

As you already know from my analysis, the currency pair found strong support at the ascending pitchfork's median line (ml) failing to reach and retest the 1.2650 downside obstacle.

The pair failed to come back to reach and retest the median line (ml) and the 1.27 psychological level signaling strong upside pressure. A valid breakout above the 1.2796 could really activate further growth and could bring new long opportunities with a potential upside target at the 1.29 psychological level.