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USD/CAD Showing some Bullish Continuation Signs

USD/CAD 1H Chart 11/5


(click to enlarge)

The USD/CAD has been in a choppy consolidation in the past week as it fell from around 1.3275 down to about 1.3040 as we can see in the 1H chart. Yesterday (11/4), price action broke the patterns of lower highs and broke above a falling channel/wedge. Essentially, price action is showing a bullish continuation signal. 

There is a consolidation during the current session between 1.3140 and about 1.3190. A break above resistance should help confirm the bullish breakout and open up the 1.3275 high, with risk of continuing towards the 2015-high just above 1.3450. 

USD/CAD 4H Chart 11/5

(click to enlarge) 

If price fails to hold above 1.3140 on the other hand, we might have to hold off on the bullish outlook and anticipate further consolidation action around 1.31.