USD/CAD technical analysis: Retakes 1.33, still trapped in an ascending triangle

• 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

Trend: Neutral

Pivot points