USD/CAD Surges Past Key Resistance, Bullish Targets Activated
The USD/CAD pair has made a decisive breakout from a large Symmetrical Triangle pattern on the daily chart, signaling a potential shift towards a stronger bullish trend. The breakout, marked by a long green candle on June 7th, activates key upside targets for the pair.
Bullish Targets in Sight:
- Conservative Target: 1.3881, based on the 0.618 Fibonacci extrapolation of the Triangle's height.
- Bullish Target: 1.3978, representing a full 100% extrapolation of the Triangle's height.
Short-Term Pullback, But Bullish Outlook Prevails:
While the USD/CAD has experienced a slight retracement since the breakout, the overall outlook remains bullish. A break above the June 11th high of 1.3791 would further confirm the bullish momentum and pave the way for continued gains towards the identified targets.
Downside Risks and Support Levels:
It's important to note that a decisive breakdown below the triangle's lower boundary could invalidate the bullish breakout and trigger a reversal towards 1.3472. However, the current market sentiment and technical indicators suggest a higher probability of the upward trend resuming.