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USDCAD Analysis: Bullish Chart Pattern

Conclusion for today’s USDCAD analysis: 

Eventual breakout from the bullish channel indicates the direction of the next price swing in the USDCAD.

USD CAD chart examined today is the Daily timeframe, with coverage of over 18 months of price action. Previous analysis was provided here.

Canadian dollar forecast, USDCAD chart

The current price swing that is the focus of this analysis is from September 12, 2017 to current date. One of the major use of chart patterns is to help provide context for price action. Besides, they are very useful for price projections and help estimate the minimum expectation(s) for price action upon breakout and confirmation.  Advanced use of chart patterns with momentum is discussed in the strategy section of the Coin Analyst website.

A bullish price channel is used in this case to help put price action in the USDCAD in perspective. Ellipses drawn on the chart show price pivots used in establishing the chart pattern.

The width of the chart pattern is also indicated and can be projected onto the breakout point out of the chart pattern for minimum estimation of movement of the USDCAD. A symmetrical triangle is also shown on the USD CAD chart, with eventual breakout confirming the pattern and favoring the next direction of price swing in the USD CAD.

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