USD/CAD Technical Analysis: Four month trendline hurdle holds despite inverse H&S breakout

• The USD/CAD closed at 1.3085 on Oct. 18, confirming an inverse head-and-shoulders bullish reversal, still, a break above the trendline falling from June highs remains elusive.
• A close above the trendline hurdle of 1.3123 would validate the inverse head-and-shoulders breakout and open the doors to 1.32.
• The 5-day and 10-day exponential moving averages (EMAs) are trending north in favor of the bulls. The14-day RSI is printing bullish above 50.00. Further, the MACD is signaling that bullish move is gathering steam.

Daily Chart

Spot Rate: 1.3097

Daily High: 1.3108

Daily Low: 1.3088

Trend: Bullish above 1.3123

Resistance

R1: 1.3123 (trendline resistance)

R2: 1.3175 (August 16 high)

R3: 1.3226 (Sept. 6 high)

Support

S1: 1.3066 (neckline support)

S2: 1.3044 (10-day EMA)

S3: 1.30 (psychological support)