USD/CAD: The market could now be in the process of carving out an inverse head & shoulders base and it will be interesting to see if the pattern formation can trigger over the coming sessions. Neckline resistance for the bottom comes in by 1.0215, and a break back above this level will be required to confirm pattern formation and accelerate gains towards a 1.0400 area pattern objective. Intraday setbacks are expected to be well supported ahead of 1.0050.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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