USD/CAD Technical Analysis: Stronger corrective bounce likely

Omkar Godbole FXStreet Contributor

The USD/CAD pair is currently trading at 1.3148 - up 0.6 percent from the three-month low of 1.3068 hit on Feb. 1.

That corrective bounce could be extended further toward 1.32 in the next day or two, as the hourly chart is reporting a major bullish reversal pattern.

Hourly chart

The inverse head-and-shoulders breakout - a transition from the lower highs and lower lows to the higher highs and higher lows - seen in the above chart indicates a bearish-to-bullish trend change.
The spot has also found acceptance above the trendline sloping downwards from the Jan. 24 and Jan. 29 highs.
The pair, therefore, could extend the corrective bounce to the downward sloping 200-hour moving average (MA), currently at 1.389.
A move below 1.3124 would invalidate the bullish setup.

Trend: Bullish

USD/CAD

Overview:
    Today Last Price: 1.3148
    Today Daily change: 16 pips
    Today Daily change %: 0.12%
    Today Daily Open: 1.3132
Trends:
    Daily SMA20: 1.324
    Daily SMA50: 1.3368
    Daily SMA100: 1.3221
    Daily SMA200: 1.3132
Levels:
    Previous Daily High: 1.3154
    Previous Daily Low: 1.3101
    Previous Weekly High: 1.3287
    Previous Weekly Low: 1.3069
    Previous Monthly High: 1.3664
    Previous Monthly Low: 1.3118
    Daily Fibonacci 38.2%: 1.3133
    Daily Fibonacci 61.8%: 1.3121
    Daily Pivot Point S1: 1.3104
    Daily Pivot Point S2: 1.3076
    Daily Pivot Point S3: 1.3052
    Daily Pivot Point R1: 1.3157
    Daily Pivot Point R2: 1.3181
    Daily Pivot Point R3: 1.3209

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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