Forex Flash: USD/CAD may be forming inverse H&S - TDS

FXstreet.com (San Francisco) - The broader bias for USDCAD remains bearish, as trend channel resistance in the low/mid 0.98s managed to cap the pair again this week, and as the market struggles to overcome the 40-day MA at 0.9822, says TD Securities in a research note. But TDS also observes that price may be forming a base/reversal - the Aug 21 trough is noted as shoulder 1, the Sep 14 trough represents the "head", and the recent Oct 5 trough noted as shoulder 2; "the implication of a clear and sustained move through 0.9871 neckline resistance would be a move up to 1.0150," explains TDS.

USDCAD trades at 0.9795 ahead of the weekly close.