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USD/CAD - taking a stab at 1.2750

The USD/CAD recently made a bullish swing from its low on the year at 1.2460 to tag 1.30 earlier this week. Since then, we have seen a bearish correction in the near-term.

USD/CAD 5/12 1H Chart

(click to enlarge)

When we look at the 1H chart we can see that price is retreating towards 1.28. Actually, with a bullish divergence between price and the 1H RSI, we could see some buying today above 1.28, especially with price approaching the 200-hour simple moving average as well. 

However, if price falls below 1.28, I would want to look at the 1.2745-1.2755 area. This is a support/resistance pivot and if the RSI shows another bullish divergence, I would be inclined to buy here with a stop below 1.27 and a bullish outlook limited to 1.30, with 1.29 as a more conservative target.