USD/CAD Price Analysis: Bulls firm at a critical support structure and eye 1.2950

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  • USD/CAD bulls are moving in across a key support structure.
  • The bulls eye the 50% and 61.8% ratios for the sessions ahead. 

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:

USD/CAD 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 H1 chart

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.