USD/CAD – Bullish FLAG setup | Focus on the breakout?

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USD/CAD has broken out of its descending channel forming a textbook bullish flag consolidation Price is currently hovering around 1.36461 with momentum favoring the upside.

Key Technical Insights:
Pattern: Symmetrical triangle evolved into a descending channel → recent bullish breakout suggests a shift in market sentiment.
Current Structure: A bullish flag is forming, indicating a potential continuation move if price holds above immediate support.
Upside Target: A confirmed breakout above the flag points to resistance near 1.3850–1.3900, aligning with previous structure highs.

What to Watch:
1. Bullish Scenario:
Hold above 1.3700 (flag support).
Clean breakout + retest confirms momentum toward 1.3850+.
2. Bearish Rejection:
Failure to stay above support could send price back to 1.3550 or lower.

Resistance Zone: 1.3850–1.3900
Support Zone: 1.3700 (bullish flag boundary)


Summary:
Momentum favors bulls as long as USD/CAD maintains structure above support. A breakout retest could offer a high-probability long entry toward key resistance levels. Patience and confirmation are essential!

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Best Regards TrendLinford!

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