Forex Flash: USD/CAD buying dips for 1.02/1.03 target – TD Securities

TD Securities analysts say that the USD/CAD price action looks a little more constructive still today, with the short-term (hourly chart) showing price moves over the past three days carving out a potential inverse H&S reversal (neckline trigger at 0.9992): "The scale of the formation suggests upside scope of only 50 ticks or so from 0.9992 but a move up from current levels would be in line with the positive technical undertone for funds we highlighted yesterday", wrote analysts Shaun Osborne and Greg Moore.

A three-day reversal pattern has developed—a daily “morning star” reversal – which is a usually reliable signal: "We have to concede that yesterday’s leg up would have been a little stronger ideally but the basics of the pattern pass the “duck test” and occurred at a significant point (around retracement support) so we are paying attention", they added, still buying dips for 1.02/1.03 target.