DailyFX.com -

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Hammer Awaiting Confirmation Near Key Support
  • Awaiting Close Below 1.0850 To Suggest A “Double Top”

USD/CAD remains at a crossroads near the 1.0850 mark as a Hammer formation suggests the bulls may be set to return. If confirmed by a successive up-day the bullish reversal signal could prompt a run on the recent highs near 1.0980. Whereas a daily close below the support level would complete a double top formation, and warn of a more sustained pullback towards the psychologically-significant 1.0700 handle.

USD/CAD: Hammer Awaiting Confirmation Near Key Support

USD/CAD At A Crossroads As A Hammer Emerges At Critical Support

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

A Bullish Engulfing formation offered an early indication of an imminent bounce for USDCAD. The key reversal pattern casts the spotlight on intraday resistance at the 1.0900 ceiling.

USD/CAD: Bullish Engulfing Formation Signaled An Intraday Bounce

USD/CAD At A Crossroads As A Hammer Emerges At Critical Support

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/CAD, USD/JPY Seen as Most Resilient USD-Pairs

  2. Investing

    USD/CAD Continues to Struggle During Trading Session

  3. Forex News

    USD/CAD Technical Analysis: Treading Water Below 1.23

  4. Forex News

    USD/CAD Former Resistance Line May Provide Support Near 1.21

  5. Investing

    USD/CAD Expecting a lot of Volatility

Trading Center