USD/CAD Price Analysis: Inverse Head & Shoulders keep buyers hopeful around 1.2750

USD/CAD grinds higher around one-week top, defends Friday’s stellar run-up.
Bullish chart pattern joins firmer MACD, sustained trading beyond 200-SMA to favor buyers.
Monthly horizontal support restricts short-term downside, bulls need validation from 1.2800.

Anil Panchal FXStreet

USD/CAD seesaws around 1.2750 during Monday’s Asian session, having jumped the most in a week the previous day.

In doing so, the Loonie pair stays near the breakout point, namely the neckline, of a bullish chart pattern called “Inverse Head & Shoulders”.

Also keeping buyers hopeful are the Bullish MACD signals and the successful trading above 200-SMA.

However, a clear upside break of the 1.2800 level becomes necessary to confirm the bullish formation, which in turn will hint at the theoretical rally towards 1.3150.

During the rise, January’s top near 1.2815 and the 1.3000 round figure may act as intermediate halts.

On the contrary, pullback moves remain elusive beyond the 200-SMA level of 1.2670, a break of which will direct USD/CAD bears towards a horizontal area comprising multiple levels marked since January 11, near 1.2560.

USD/CAD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.275
Today Daily Change	-0.0006
Today Daily Change %	-0.05%
Today daily open	1.2756

Trends
Daily SMA20	1.2622
Daily SMA50	1.2716
Daily SMA100	1.2625
Daily SMA200	1.2515

Levels
Previous Daily High	1.2788
Previous Daily Low	1.2663
Previous Weekly High	1.2788
Previous Weekly Low	1.265
Previous Monthly High	1.2814
Previous Monthly Low	1.2451
Daily Fibonacci 38.2%	1.274
Daily Fibonacci 61.8%	1.2711
Daily Pivot Point S1	1.2683
Daily Pivot Point S2	1.2611
Daily Pivot Point S3	1.2559
Daily Pivot Point R1	1.2808
Daily Pivot Point R2	1.286
Daily Pivot Point R3	1.2932

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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