USD/CAD has started to stall on the offer and the bulls could be moving in for a run towards old support near a 50% mean reversion of the bearish impulse on the daily chart located at 1.2936. The M-formation is a reversion pattern that typically results in a retest of the neckline as illustrated in the following analysis o the daily chart:
Beyond the 50% mean reversion and neckline of the M-formation, the 61.8% Fibonacci aligns with the base of the neckline for a deeper target near 1.2970. As an approximate mean of the two ratio targets, the psychological round1.2950 number could be an important figure for the forthcoming sessions.
USD/CAD is accumulating across a support structure on the hourly chart and a break of 1.2860 and then 1.2880 should open the way towards the 50% and 61.8% ratios for the bulls.