Nick Nasad
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USD/CAD - Does Inverse H&S Suggest Topside, Or Does CAD Regain Momentum?

Here's a look at USD/CAD in 4-hour:

  • The pair has put in a V-shaped bottom, and is currently gradually working its way through various "necklines" or horizontal pivots, giving it the shape of a slightly skewed inverse head-and-shoulders.
  • The RSI has managed to get to 60 and has stalled there. That could be interpreted as the either the pair getting ready for a further downward continuation swing, or as a sign that the bulls of the pair are trying to wrestle control away from the bulls, in which case the RSI should move towards 70.
  • If the pair heads upward, then we can look for several resistance zones to the topside including: the 200-ema/pivot at 1.0355, the 50% fib, the 200-sma and then the 61.8% fib retracement at 1.0410.
  • If however, the pair heads downward, the key support levels to watch will be 1.0275 and 1.0220.
  • You can see the bullish and bearish scenarios in the image.

Look at the USD/CAD's current price action (and how the set-up above went) by clicking below:

- Nick