USD/CAD Breaks Key Resistance: Major Long-Term Buy Signal Looms
14 November 2024
The American dollar to Canadian dollar pair is currently at a pivotal point, presenting a crucial opportunity for traders. Examining the weekly chart, the pair is pressing against a key horizontal resistance level, highlighted in yellow, which has historically been significant. This resistance is part of an ascending triangle formation, supported by black trendlines—a structure that typically indicates bullish potential when broken to the upside.
Currently, the price is attempting to break above this resistance, and a successful close above the yellow area by the end of the week would signal a major buying opportunity in the long term. This breakout would affirm the ascending triangle pattern, suggesting sustained upward momentum. Traders should remain vigilant as, in many cases, a breakout is followed by a short-term pullback to retest the newly-formed support before further gains.
It is essential to monitor whether the pair closes the week above the yellow resistance. Such a close would confirm the breakout and trigger a significant buy signal. However, if the price fails to sustain above this level, it could signal a temporary setback or consolidation phase, delaying the bullish outlook. As of now, all eyes should be on the weekly close for validation of the breakout and a potential continuation of the uptrend.