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.

Ross J Burland FXStreet

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:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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