USD/CAD Technical Analysis: Stronger corrective bounce likely

The USD/CAD pair is currently trading at 1.3148 - up 0.6 percent from the three-month low of 1.3068 hit on Feb. 1.

That corrective bounce could be extended further toward 1.32 in the next day or two, as the hourly chart is reporting a major bullish reversal pattern.

Hourly chart

• The inverse head-and-shoulders breakout - a transition from the lower highs and lower lows to the higher highs and higher lows - seen in the above chart indicates a bearish-to-bullish trend change.
• The spot has also found acceptance above the trendline sloping downwards from the Jan. 24 and Jan. 29 highs.
• The pair, therefore, could extend the corrective bounce to the downward sloping 200-hour moving average (MA), currently at 1.389.
  A move below 1.3124 would invalidate the bullish setup.

Trend: Bullish

Overview:
Today Last Price: 1.3148
Today Daily change: 16 pips
Today Daily change %: 0.12%
Today Daily Open: 1.3132

Trends:
Daily SMA20: 1.324
Daily SMA50: 1.3368
Daily SMA100: 1.3221
Daily SMA200: 1.3132

Levels:
Previous Daily High: 1.3154
Previous Daily Low: 1.3101
Previous Weekly High: 1.3287
Previous Weekly Low: 1.3069
Previous Monthly High: 1.3664
Previous Monthly Low: 1.3118
Daily Fibonacci 38.2%: 1.3133
Daily Fibonacci 61.8%: 1.3121
Daily Pivot Point S1: 1.3104
Daily Pivot Point S2: 1.3076
Daily Pivot Point S3: 1.3052
Daily Pivot Point R1: 1.3157
Daily Pivot Point R2: 1.3181
Daily Pivot Point R3: 1.3209

Source: https://www.fxstreet.com/news/usd-cad-t ... 1902060523