DailyFX.com -

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Bearish Pattern Emerges On Pullback from 1.0980 Barrier
  • Awaiting Close Below 1.0900 To Open Drop To 1.0854

USD/CAD is in danger of completing a double top formation on the back of a Bearish Engulfing candlestick pattern. If the key reversal signal is confirmed by the close of the current candle it could leave the pair vulnerable to further weakness. A crawl under the psychologically-significant 1.0900 handle would set the scene for a run on the recent lows near 1.0854.

USD/CAD: Retreats From Critical 1.0980/95 Barrier

USD/CAD Bearish Engulfing Pattern Warns Of Further Weakness

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

A similar narrative to the daily is evident on the four hour chart. A Bearish Engulfing formation near the 1.0995 ceiling offered an early indication of a potential pullback over session. Buying interest at the 1.0900 hurdle may slow the pair’s descent, yet an absence of bullish candlestick patterns casts some doubt on the potential for a corrective bounce.

USD/CAD: Bearish Pattern Offered Early Warning Sign

USD/CAD Bearish Engulfing Pattern Warns Of Further Weakness

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!