USD/CAD – Consolidation nearing an end

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Updated: 22 May 2020

Good day traders! Since my last update on the USD/CAD, price has not yet broken out of a sideways consolidation phase and continues hovering above the May 2017 and December 2018 highs.

Price is currently trading higher, within what looks like, a descending triangle formation. Should price reach the upper resistance line and turn lower again, then the USD/CAD might finally break below the 1.3850 level and drop towards the previous yearly highs at 1.3793 and 1.3662.

That being said, if the USD/CAD breaks above this triangular pattern and the upper blue median line above there, then price could very well go to new highs – but for now my bias remains bearish over the short-term.

More updates to follow.

Bias: Bearish below 1.3850

Potential Resistance: upper green resistance line and upper blue median line

Potential Targets: 1.3793 and 1.3662

Until next time, have a great weekend and stay safe!

Richard Krugel