Lately, the USD/CAD has been taking a breather after surging upward finally on some weak CAD economic data. The quesion is...which way does it break out next? The answer may lie in the upcoming data.
On Wednesday we'll have the Gross Domestic Product numbers out of Canada. That could throw it outside of the triangle to one side or the other depending on how that turns out.
Also, a couple of other events could do it too. Wednesday's U.S. Existing Housing numbers could do it or Thursday's New Home Sales in the U.S. could also spur a breakout of this pair.
While it could come as soon as Tuesday's National Home Price Index, it's unlikely. It will probably wait for the more important existing and new home sales numbers or CAD's GDP. Any of these news events could be the catalyst that pulls USD/CAD outside of the triangular pattern of consolidation. It could move 150+ pips once it breaks out. Hang on! We could be in for a ride. (Click on the chart below to enlarge it.)
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