USD/CAD recently broke above the upper resistance trendline of the 4-hour Triangle chart pattern that was previously identified by Autochartist – as can be seen from the following trade opportunity alert for this currency pair. The price is expected to break above the intervening resistance level 1.0421 (B) and then to rise to the target level 1.0513 in the following five trading days. Autochartist set the stop-loss at the last connecting point of the opposite trendline of this chart pattern – at 1.0271 (point A). The breakout of this Triangle continues the strong medium-term uptrend that can be seen on the daily USD/CAD charts. The Volatility Analysis shown on the second chart below confirms this forecast.
As you can see from the following Volatility Analysis chart, most of the daily Expected Price Range (from 1.0359 to 1.0487) stands above the broken resistance trendline of the Triangle shown above – which adds to the likelihood there will be more follow-though buying of this currency pair tomorrow.