USD/CAD Price Analysis: Teases inverse head-and-shoulders confirmation on 4H
|- USD/CAD stays bid as bulls attack key SMA hurdle.
- Strong RSI, US dollar upside favor confirmation of the bullish chart pattern.
- Bears need to refresh weekly low for fresh entry.
USD/CAD prints mild gains while taking rounds to the intraday high, currently up 0.12% around 1.2685, during early Friday. The quote’s bounce off 1.2575 the previous day portrays a bullish chart pattern, inverse head-and-shoulders, on the four-hour (4H) play.
It should, however, be noted that the pair currently battles a 200-bar SMA level of 1.2700 before the neckline of the stated chart formation, at 1.2717 now, could test the USD/Cad bulls.
Given the upbeat RSI joining strong US dollar moves, USD/CAD is set to trigger a theoretical run-up of nearly 300-pips from 1.2717. Though, highs marked during February and January, respectively around 1.2845 and 1.2880, not to forget the late December tops near 1.2960, can offer intermediate halts during the rally.
Alternatively, sellers may refrain from entries unless witnessing a fresh weekly low under 1.2575 wherein the 1.2600 threshold offers immediate support.
Following the USD/CAD drop past-1.2575, February’s multi-month low near 1.2515 will be easily conquered to test the 1.2500 round-figure.
USD/CAD four-hour chart
Trend: Further upside expected
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