USD/CAD triangle breakout in uptrend

October 10, 2016 12:03

The USD/CAD broke through the symmetrical triangle and is heading towards H3 weekly pivot point. In the case the price stays above 1.3220 the pair should reach 1.3360 short term. The problem for bulls might be that the price is showing huge bearish divergence and in the case the price starts dropping, I would be watching for 1.3130-50 POC zone (L4, symmetrical triangle, historical buyers). Daily chart shows strong bullish candle too, so the scenarios are:

1.The price stays above H3 - 1.3220 and proceeds directly to 1.3300 and 1.3360.

2.Divergence plays out, price drops below 1.3220

3.Possible bounce within POC zone 1.3130-50 towards 1.3360.

If the price breaks below 1.3040 bullish scenario will be negated.

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