USD/CAD (a daily chart of which is shown), which has generally been entrenched in an overall sideways consolidation since late 2009, has now formed a large converging triangle pattern consolidation. This pattern suggests a progressive tightening of volatility in the pair over the course of the past several months, which could potentially result in a substantial breakout on high volatility. For more USD/CAD technical analysis, please click here.

James Chen, CTA, CMT