USD/CAD has been bearish in April after completing a head and shoulders pattern seen in the 4H chart. USD/CAD 4H Chart(click to enlarge)1.2550 Pivot:- This week, price found support at the 1.2550 pivot, which was a support/resistance pivot in April.- The RSI in the 4H chart was also in oversold area, but not anymore.- When we look at the 1H chart, we see a possible inverted head and shoulder forming.- The 1H chart also shows that the trend is very bearish as price holds under the 200-, 100- and 50-hour SMAs.- However, if price breaks above the neckline around 1.2620, we might have a rally back towards the 1.2720-1.2740 area (200-hour SMA and previous consolidation support. - If the RSI breaks above 60, we would also likely be in a bull run (in the short-term). - The medium-term trend is still bearish, so if the 1H RSI pushes above 70 and forms a bearish divergence, then we should shift back and anticipate a bearish continuation, especially if the 4H RSI is in the 50-60 area. USD/CAD 1H Chart(click to enlarge