Both USD/CAD and SHIB/USD are consolidating inside triangle patterns on their longer-term charts.
Are we about to see breakouts soon?
USD/CAD: Daily
This forex pair has formed lower highs and found support around the 1.3250 minor psychological mark, creating a descending triangle on its daily chart.
Price is currently testing the resistance and might be thinking of breaking out soon, but what are technical indicators saying?
Moving averages seem to be in favor of more gains, as the 100 SMA is above the 200 SMA to reflect bullish momentum.
If an upside breakout happens, USD/CAD could rally by the same height as the chart pattern, which spans roughly 700 pips.
Stochastic, on the other hand, is hinting that buyers could use a break soon. The oscillator is closing in on the overbought region and might turn lower to indicate that selling pressure is returning.
In that case, USD/CAD could retreat to the triangle support near the 200 SMA dynamic inflection point.
Just keep an eye out for either reversal or breakout candlesticks at the triangle top for more clues!
SHIB/USD: 4-hour
Crypto traders, gather round!
Shiba Inu has formed lower highs and higher lows, making a symmetrical triangle pattern on its 4-hour time frame.
The consolidation has been getting tighter and tighter all month, so a breakout is bound to happen soon. Price is testing the triangle top and might be in for a big upside move.
If that happens, SHIB/USD could be in for a climb that’s the same height as the formation. Technical indicators are pointing to more gains, too.
For one, Stochastic is already starting to pull higher from the oversold area to signal a pickup in bullish vibes. The oscillator has plenty of room to move north, so price could keep following suit.
In addition, the 100 SMA is above the 200 SMA to confirm that bulls have the upper hand. The 200 SMA even held as dynamic support at the bottom of the triangle, and SHIB/USD is climbing above the 100 SMA so this could hold as a floor as well.
Keep your eyes peeled for candles closing above the triangle resistance, so you don’t miss a bullish breakout if it happens.
