The technical picture of USDCAD on our 4-hour chart shows that the pair is currently trading inside a descending triangle pattern. According to Technical Analysis rules, such patterns tend to break to the downside. For that, a confirmation break roughly below the 1.3650 zone would be needed. This way, a forthcoming lower low would be confirmed and more sellers may join in. We could then aim for our Downside Target 1 level, a break of which might set the stage for a move towards our Downside Target 2 level, which is the current lowest point of March.
Alternatively, a break of the upper side of the aforementioned triangle pattern may signal a change in the direction of the short-term trend, potentially clearing the path to some higher areas. That's when we will consider our Upside Targets 1 and 2.
Alternatively, a break of the upper side of the aforementioned triangle pattern may signal a change in the direction of the short-term trend, potentially clearing the path to some higher areas. That's when we will consider our Upside Targets 1 and 2.
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