By Admiral Markets

The USDCAD went down as analyzed on a previous Session Recap webinar and CAD was also supported by a good CPI and retail sales. Currently it seems the pair is waiting for FED decision this week and technically we see the range.

USDCAD price action is showing consolidation within the triangle which is also contained withing the consolidation zone (red rectangle). What traders would love to see is a breakout to the downside that would justify the bearish trend. If H1 closes below 1.2678 with a momentum candle or now moment sellers we could see it within 1.2620-00 target zone. Only a h1 momentum candle or 4h close below 1.2592 will mark 1.2530 as next potential target.

Traders should watch for a potential breakout in the trend (bearish) direction as any spike above the interim high (blue rectangle) could spike the pair towards 1.2740 thus making a bearish triangle breakout invalidated.

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Article by Admiral Markets

Source: USDCAD bearish triangle within the consolidation zone

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