As we approach the President elect Trump’s inauguration date later this month, the USD data has been very sound to begin the year. Whilst Commodities prices in general have strengthened since Trump indicated he wanted to rebuild America’s infrastructure, the price of Oil has dipped in recent days. Nonetheless, the CAD has been performing pretty well, and on the Daily TF, we seem to have had a double top on this pair at 1.36, that pulls the price down. As you can see on weekly chart the price is retracing towards POC zone where it could shape Inverted Head and Shoulders (Bullish SHS) pattern.
POC (potential right shoulder, historical buyers, order block, 61.8) 1.3260-80 could spike the price to the upside providing that price stays above 1.3230. Targets are 1.3350 and 1.3400. Only if we see a 4h close above 1.3400 the pair will aim for 1.3500 and above. Above 1.3600 the pair will breakout of bullish SHS pattern and the 1.3800 should be exposed. So at this time for intra day and intra week swing trading pay attention to POC zone and possible rejection should POC is reached.
USDCAD 4 Hour Chart