Triangle pattern forms on the USD/CAD daily chart

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The daily USD/CAD has formed a symmetrical triangle as the prices are being squeezed as the pair moves sideways in an accumulation cycle.

The sideways market is a perfect environment for this USD/CAD set up…my only gripe is that the time of year could create some whipsaws for this momentum set up. Use the MACD Histogram to confirm the direction of the break and keep an eye out for major psychological levels at the entry.

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Remember that triangles are “self limiting” patterns that will eventually put a squeeze on prices to the point that there is not where left to go. The momentum at the time of the breakout or breakdown will offer some near term insight into the potential follow-through.

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