DailyFX.com -

Talking Points

  • USD/CAD Technical Strategy: Longs Preferred
  • Bounce off key support yields Morning Star pattern
  • Former resistance at 1.0700 now offers support

USD/CAD’s break above 1.0700 has yielded a somewhat asymmetric Morning Star formation on the daily, which suggests the potential for a continued recovery for the pair. Buyers are likely targeting the 1.0810 mark.However,a daily close back below 1.0700 would suggest a false breakout and negate a bullish technical bias.

USD/CAD: Bulls Look To Take Control Following Morning Star Pattern

USD/CAD To Continue Recovery Following Morning Star Pattern

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

A glance at the four hour chart reveals a Dark Cloud Cover pattern forming in intraday trade. However, the second candle has yet to close and receive confirmation from a successive down-period, before the bearish signal is confirmed.

USD/CAD: Dark Cloud Cover Forming In Intraday Trade

USD/CAD To Continue Recovery Following Morning Star Pattern

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

By David de Ferranti, Market 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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Investing

    USD/CAD: August 2015 Forecast

  2. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  3. Forex News

    USDCAD Falls Even After Significant Miss in CAD GDP Data

  4. Forex News

    Breakout on Tap Next Week? USDOLLAR Index Eyes Flag Top

  5. Forex News

    USD/CAD Technical Analysis: Bulls Fight to Retake Control

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!