USD/CAD Violates Triangle – CB Consumer Confidence Up Next
Recalling FX Leaders’ Daily Brief for July 30, the second most important economic event is the CB Consumer Confidence data from the United States. It’s expected to surge from 121.5 to 125.2, giving us a reason to support bullish Dollar during the New York session.
Well before the data comes out, we have a trade setup in USD/CAD that I would like to share with you. Looking at the 2 hourly timeframes, USD/CAD has broken above 1.3150 resistance area and closed several candles outside the range. It was a bullish triangle pattern which was keeping USD/CAD bullish.
At the moment, USD/CAD is heading lower to test the horizontal support level of around 1.3150. That’s the area where 50 periods moving average may extend support to the Loonie.
Thing is, leading indicator RSI is still holding into the bullish zone and may drive further buying in the pair.
USD/CAD – Trading Levels
Support Resistance
1.3152 1.319
1.3136 1.3214
1.3098 1.3253
Key Trading Level: 1.3175
Therefore, better than expected CB consumer confidence may drive downward moves until 1.3150 and the violation of this may trigger sell-off until 1.3130. Whereas, figures over 125 may drive a sharp upward trend above 1.3160 to lead USD/CAD prices towards 1.3200.
Good luck!
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