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.