USD/CAD has recently made a significant move by breaking out of a large symmetrical triangle price pattern on the daily price chart. This breakout has activated upside targets for the currency pair, with a conservative target at 1.3881 and a more bullish target at 1.3978. Despite some bearish price action since the breakout on June 7, the probabilities suggest a continuation higher for USD/CAD. A key bullish confirmation would be a break above the June 11 high at 1.3791.
The long green bullish candle that formed on June 7 accompanied the upside breakout from the Triangle, indicating a decisive break in the pattern. The height of the Triangle from the breakout point higher suggests the conservative target of 1.3881 as the 0.618 Fibonacci extrapolation. Additionally, a more bullish target of 1.3978 can be determined as the 100% extrapolation of the triangle northwards. These targets provide a roadmap for potential price movement in the coming days.
While there has been some backing and filling of price action since the breakout, the overall trend for USD/CAD remains bullish. A break above the June 11 high at 1.3791 would provide further confirmation of the bullish momentum. However, a decisive breakdown from the triangle could reverse the trend and signal a move down to an initial target around 1.3472. Traders will need to closely monitor price action to assess the likelihood of continued upside movement.
As USD/CAD continues to show strength following the breakout, traders can look for opportunities to participate in the potential upward movement. Keeping an eye on key resistance levels, such as the June 11 high at 1.3791, will be important for monitoring the bullish momentum. Additionally, taking into account the Fibonacci extrapolation targets of 1.3881 and 1.3978 can help traders set profit targets and manage risk effectively during this bullish phase for USD/CAD.
In conclusion, the breakout of the symmetrical triangle price pattern on the daily chart for USD/CAD has activated upside targets and signaled a potential continuation higher. While some bearish price action has been observed, the probabilities favor a resumption of the initial move upwards. Traders should watch for a break above the June 11 high at 1.3791 for further confirmation of the bullish trend. By monitoring key levels and targets, traders can position themselves strategically to capitalize on the potential upside momentum in USD/CAD.
