- USD/CAD is better bid at press time but is still stuck in an ascending triangle on the 4-hour chart.
- A triangle breakout would signal a resumption of the rally from July lows.
USD/CAD has added more than 15 pips in the last sixty minutes and is currently trading at 1.3310, having carved out a bullish higher low of 1.3249 earlier this week.
The outlook, however, remains neutral as the pair is still trapped in an ascending triangle as seen on the 4-hour chart.
Ascending triangles usually end up accelerating the preceding bullish move. So, a breakout, if confirmed, would signal a resumption of the rally from the July 19 low of 1.3016 and open the doors to 1.3432 (June 18 high).
Meanwhile, the triangle breakdown would imply n end of the rally from the July 19 low of 1.3016.
As of writing, the upper edge of the ascending triangle is located at 1.3345 and the support is seen a 1.3269.
The breakout could happen later today if Federal Reserve’s President Powell again dashes hopes of an aggressive easing in the near-term. Powell cut rates last month by 25 basis points, as expected, but refrained from signaling further easing.
His non-committal stance was validated by the minutes released Wednesday, which showed the officials were reluctant to start a full-blown easing cycle.
Daily chart
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Trend: Neutral
Pivot points
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