USD/CAD is currently testing the neckline of its head-and-shoulders chart pattern, and could be eyeing a sustained break below this level.
An uptick in crude oil prices is helping lift the Canadian Dollar with many investors also expecting the BOC to announce a rate hike at the end of the month. The market has also been pricing in the potential of multiple rate hikes by the Fed in 2022, although the US central bank will likely only begin raising interest rate after they finish tapering in March.
Is USD/CAD in for breakdown from its current levels, or can inflation data from the US this week help the pair rally?
Click the following link for an in-depth technical analysis and key levels to keep an eye on: