USD/CAD Technical Analysis: Post-Christmas trading range forms a rectangle on hourly charts

   “¢   The pair’s post-Christmas attempted up-moves struggled to make it through the 1.3660 supply zone, though bulls have managed to defend 200-hour SMA.  

   “¢   The range-bound price action, forming a rectangular chart pattern, might still be categorized as a consolidation phase that marks a pause in the bullish trend.

   “¢   Although seen as a continuation pattern, rectangle sometimes also mark significant trend tops or bottoms and is not complete until a breakout has occurred.

   “¢   Hence, it would be prudent to wait for a convincing breakthrough the above-mentioned barrier before traders start positioning for a fresh leg of an up-move.

   “¢   Meanwhile, the downside remains protected by 200-hour SMA, which is followed by the lower end of the recent trading range, around the 1.3570-65 region.

   “¢   A convincing break through the said support levels might negate the bullish outlook and prompt some aggressive long-unwinding trade in the near-term.

USD/CAD 1-hourly chart