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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

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