USD/CAD Price Analysis: Bulls failed to break out, but Inverse H&S could now be the ticket
|- USD/CAD bulls are seeking a break of 1.2880's.
- Inverse H&S are taking shape for the week ahead.
As per last week's analysis, USD/CAD Price Analysis: Bulls are firming up at a critical support area, the bulls came out in force and took the price higher, but as illustrated below, the bears are putting up a fight.
USD/CAD prior analysis, daily chart
It was illustrated that the bulls will be keen on the discount and to take the price higher.
USD/CAD live market
The price rallied but was met with supply at the start of the new week, despite a dip in the price of oil:
The move in the Canadian dollar could be down to the market's rethinking for the Bank of Canada in March. Despite Friday's poor Employment for January and subsequent sell-off in the loonie, the BoC is unlikely to have not seen this coming.
''We don't expect this report to derail the BoC in March as the Bank should have incorporated near-term weakness into its latest projections,'' analysts at TD Securities argued, ''We continue to look for four rate hikes in 2022, with balance sheet runoff starting in April.''
Therefore, staying with the technicals, the bulls might take solace from the formation of the Inverse Head & Shoulders on the daily chart as follows:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.