USD/CAD Technical Analysis: Cup and handle pattern on the hourly chart

• The cup and handle bull breakout seen in the USD/CAD hourly chart indicates the currency pair has likely bottomed out at 1.2887 and has opened the doors to 1.31 (target as per the measured height method).
• The outlook as per the daily chart would turn bullish if the pair clears the trendline sloping downwards from the June 27 high and July 20 high. As of writing, the trendline hurdle is located at 1.3119.
• On the downside, a move below 1.2962 would invalidate the intraday bullish view put forward by the hourly chart.

Hourly Chart

Spot Rate: 1.3012

Daily High: 1.3023

Daily Low: 1.2969

Trend: Bullish

Resistance

R1: 1.3064 (July 11 low)

R2: 1.31 (50-day moving average)

R3: 1.3119 (falling trendline hurdle)

Support

S1: 1.3005 (100-day moving average)

S2: 1.2959 (5-day moving average)

S3: 1.2887 (Aug. 28 low)