The 1 hour timeframe of the USDCAD shown in this analysis is from June 11, 2018 to present date. Commentary provided below is based on the numbers marked on the chart.
(1) Bearish trendline in the USDCAD that was most recently tested on September 6, 2018 leading to price moving back support around ~1.2888. The bearish trendline and support do form a descending triangle chart pattern that is ideally bearish.
(2) ~1.3199 and 1.3177 indicate price level of resistance that coincides with the bearish trendline (i.e. 1 above) and a breakout above the top of this region (1.3199) could result in further bullish action in the USDCAD.
(3) ~1.2888 is used in this analysis as support level. Price closing below this level could result in further bearish action in the USDCAD, with the width of the triangle useful for projection of the termination of the bearish trend.
~1.2947 is also indicated as a price level to keep an eye one as a possible fake out breakout to the downside and recovery back into the triangle is possible. In such a scenario, 1.2947 could be used as a point of entry into for a bullish position.
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