USDCAD Technical Analysis: Navigating the Symmetric Triangle

USDCAD Technical Analysis: Navigating the Symmetric Triangle
Today's technical analysis spotlight is on the USDCAD. Notably, we are still encapsulated within a long-term symmetric triangle, initiated in mid-September 2022. This week is poised to deliver significant developments for this triangle, either in the form of a bounce or a breakout of the pattern's lower line, courtesy of a packed economic calendar.
Key USD data scheduled for this week could strongly influence this pair. Tuesday brings us US inflation figures. On Wednesday, the Federal Reserve's interest rate decision, followed by the FOMC press conference and statement, will undoubtedly be momentous for the USDCAD. Additionally, Thursday promises more impactful data with the release of US retail sales.

Presently, the price continues to exert pressure on the lower line of the symmetric triangle, concurrently resting on the key horizontal support level at 1.331 (blue). These factors highlight the importance of these two support levels — 1.331 and the lower line of the symmetric triangle. A bounce off these supports could signal a compelling long-term buy opportunity, potentially propelling the price toward the triangle's upper line.

The strategy now is to adopt a wait-and-see approach, as the data releases in the coming days will likely trigger significant price movements. It's worth noting that the price dynamics this week will likely be driven more by these fundamental factors rather than technical ones. However, once the fundamental picture becomes clear, technical analysis will follow, leading either to a breakout or bounce off the support.
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