USD/CAD To Continue Recovery Following Morning Star Pattern

By DailyFx | July 14, 2014 AAA

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.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD recovering from Asian lows
    Forex News

    GBP/USD recovering from Asian lows

  2. USD/JPY mellow on the back of USD sell-off
    Forex News

    USD/JPY mellow on the back of USD sell-off

  3. Dollar Cheered in Press, But Data and Fed Chatter Turning
    Forex News

    Dollar Cheered in Press, But Data and Fed Chatter Turning

  4. EUR/USD Downside Targets Favored Ahead of ECB on Slowing Inflation
    Forex News

    EUR/USD Downside Targets Favored Ahead of ECB on Slowing Inflation

  5. US Dollar Technical Analysis: Is a Pullback in the Cards?
    Forex News

    US Dollar Technical Analysis: Is a Pullback in the Cards?

Trading Center