- USD/CAD Technical Strategy: Longs Preferred
- Absence of key reversal patterns suggests gains to continue
- Break Of 1.0810 Paves The Way For Run On 1.0960
USD/CAD continues its journey to the upside target of 1.0960 following a Morning Star formation on the daily. With bearish formations still lacking the daily a break above the nearby resistance level could yield a push to the April highs near 1.1040.
USD/CAD: Upside Break Opens 1.0960 With Bearish Patterns Absent
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 Hanging Man formation failed to find confirmation from an ensuing down-period. This casts doubt on a potential correction for the pair over the session ahead. Further gains may be in store on a push above intraday resistance at 1.0870.
USD/CAD: Eyeing Further Gains As Hanging Man Fails To Find Confirmation
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.