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.

Anil Panchal FXStreet

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

additional important levels

Overview
Today last price	1.2685
Today Daily Change	18 pips
Today Daily Change %	0.14%
Today daily open	1.2667

Trends
Daily SMA20	1.2664
Daily SMA50	1.2713
Daily SMA100	1.2861
Daily SMA200	1.3113

Levels
Previous Daily High	1.2694
Previous Daily Low	1.2575
Previous Weekly High	1.273
Previous Weekly Low	1.2468
Previous Monthly High	1.287
Previous Monthly Low	1.2468
Daily Fibonacci 38.2%	1.2649
Daily Fibonacci 61.8%	1.2621
Daily Pivot Point S1	1.2597
Daily Pivot Point S2	1.2527
Daily Pivot Point S3	1.2478
Daily Pivot Point R1	1.2716
Daily Pivot Point R2	1.2764
Daily Pivot Point R3	1.2835

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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