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USD/CAD Forming a Tilted Kilroy Pattern?

The USD/CAD is showing that bears are weak in this market. Despite a sharp decline in recent weeks from 1.0997 to 1.0814, the USD/CAD still looks bullish. 1.0814 was a key support pivot and the 50-day simple moving average (SMA). Holding above it preserves a bullish outlook in USD/CAD, one that started at least from July's low of 1.0620. Now price is pushing above all the 200-, 100-, and 50-day SMAs. Also note that the daily RSI is holding above 40 after it tagged 70, showing maintenance of the bullish momentum.

Price looks poised to at least test the 1.10 handle, with upside above that first to the 1.1050 high from April, then the 1.1278 high on the year.

We can also argue that today's price action is establishing a shoulder in an inverted head and shoulder pattern - one that has a tilted neckline.

USD/CAD Daily Chart 9/2

After tomorrow's Bank of Canada monetary policy statement, let's see if USD/CAD can clear above 1.10, and complete this price bottom. That would signal a bullish outlook with the 2014-high of 1.1278 in sight.