Wake up, forex playas!
September is ending and you gotta get in your last pips before the month ends.
Triangle alert! USD/CAD is confined inside an ascending triangle that has 1.3420 as its ceiling.
Are we looking at an upside breakout in the making?Before you buy USD/CAD like there’s no tomorrow, you should note that the 1.3400 area is a legit area of interest for the pair. This means that a downside breakout (“breakdown“) is still on the table for the dollar. Hey, not all ascending triangles end up with upside breakouts, ya know.
Meanwhile, a break below the trend line support could drag the Greenback all the way to 1.3330 near the 200 SMA or even the 1.3250 previous area of interest.
Remember that range play that we were checkin’ out last week?currency pair is now back to the .9200 zone, which lines up with the broken range resistance and a 38.2% Fib move of the last upswing.
But wait, there’s more! As you can see, the 100 SMA has also recently crossed above the 200 SMA. Is USD/CHF about to see a longer-term reversal?
Buying at current levels would provide a good reward-to-risk ratio especially if USD/CHF ends up extending its uptrend.
Not interested in buying the dollar against the franc? You might want to wait until the dollar makes new weekly lows before you aim for inflection points inside the broken range.