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Talking Points

  • USD/CAD Technical Strategy: Longs Preferred
  • Absence of Bearish Signals Suggests Gains May Continue
  • Daily Close Above Nearby Resistance To Open 1.1040

USD/CADremains on the path to the 1.0960 target offered in recent candlesticks reports with bearish signals remaining absent. A daily close above the nearby barrier could generate a push to the April highs near 1.1040.

USD/CAD: 1.0960 Target Draws Nearer With Reversal Signals Absent

USD/CAD 1.0960 Target Draws Nearer With Bearish Candlesticks Lacking

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

A similar narrative to the daily is evident on the four hour timeframe after a Bearish Engulfing formation failed to find validation from an ensuing down-period. This casts doubt on a potential correction for the pair over the session ahead. A retreat below the 1.0870 floor would be required to shift the immediate risk to the downside.

USD/CAD: Eyeing Further Gains As Bearish Engulfing Formation Fails To Find Confirmation

USD/CAD 1.0960 Target Draws Nearer With Bearish Candlesticks Lacking

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Market Analyst, DailyFX

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