Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

USD/CAD - Bullish Breakout Exposes 1.28

After almost tagging 1.28 in January, USD/CAD has been consolidating in a descending triangle above 1.2350. Today, price action is breaking above the falling triangle resistance. 

USD/CAD 4H Chart 2/24

(click to enlarge)

This breakout opens up the 1.28 handle. But let's say the 1.27 resistance holds first. Then, we should see if 1.25 will hold as support. If 1.25 does hold as support, price will remain pressured towards 1.28. When we look at the monthly chart below, we can see that above 1.28, there is a little bit of room until the 2008-2009 highs in the 1.30-1.3060 area. 

Now, if price falls below 1.25, then we have a false breakout, and the pressure will be on the 1.2350 area again. After a false bullish breakout, the support will become more vulnerable. 

USD/CAD Monthly Chart
(click to enlarge)