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

By DailyFx | September 01, 2014 AAA

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.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

  5. What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank
    Forex News

    What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank

Trading Center