Possible bullish breakout on the USD/CAD

The USD/CAD has found a good resistance around the 1.3000 level as shown on the daily chart. The bullish trend is still in place according to the angle of inclination of the 55 day EMA (purple line). In fact, if the 55 day EMA manages to cross above the 200 day EMA (blue line), then we will have a golden cross, pattern that has bullish implications in the mid-term. The stochastic indicator is at the overbought zone, but it has formed what it appears to be an ascending triangle, which is telling us that the pressure is building up to the upside. Therefore, we could see a bullish breakout of the 1.3000 level. Above the 1.3000 level, its next resistance could be the 1.3200 level. To the downside, in case of a bearish pullback, its next support could be the 200 day EMA at the 1.2693 level, zone that was resistance in the past and now could become support.