USD/CAD Technical Analysis: Reversal pattern spotted on 1-hourly chart, US/Canadian jobs report awaited

   “¢   The pair was seen oscillating between two converging trend-lines on Friday and now seems to have formed a rising wedge on the 1-hourly chart.

   “¢   The contracting wedge has a bearish bias and given the pair’s recent upsurge to over two-month tops, would now be categorized as a reversal pattern.

   “¢   However, charting a trend reversal pattern on a shorter time frame might prove to be a risky proposition and thus, warrant caution for bearish traders.  

   “¢   Meanwhile, technical indicators on the 4-hourly chart remained in highly overbought territory but maintained their bullish bias on the daily chart.

   “¢   Hence, it would be prudent to wait for some aggressive long-unwinding trade before confirming that the pair might have already topped out in the near-term.

   “¢   Today’s important release of monthly employment details from the US (NFP) and Canada might act as a fresh catalyst for the pair’s next leg of a directional move.

USD/CAD 1-hourly chart