FX.co ★ USDCAD H4 | Symmetrical triangle pattern?

The USD/CAD pair currently demonstrates a bearish momentum, suggesting a potential continuation of the downtrend towards the 1st support level. The 1st support at 1.3420 is an overlap support, indicating its ability to potentially impede further downward movement. If the price falls below the 1st support, it may find support at the 2nd support level of 1.3338, recognized as a swing low support.

On the upside, the 1st resistance level at 1.3528 serves as an overlap resistance, coinciding with a 78.6% Fibonacci retracement. This resistance level has the potential to restrict upward price movements. If the price manages to surpass the 1st resistance, the next challenge lies at the 2nd resistance level of 1.3580, also an overlap resistance, aligning with a 78.6% Fibonacci retracement.

Furthermore, the chart displays a symmetrical triangle pattern, indicating a consolidation phase before a potential breakout or breakdown. A bullish breakout may occur if the price breaches the upper trendline, while a bearish breakdown could transpire if the lower trendline is breached.