- USD/CAD Technical Strategy: Shorts Preferred
- Morning Star fails to find confirmation following pullback
- 1.0630 in focus after failed attempt to breach 1.0700
USD/CAD has retreated from noteworthy resistance at the 1.0700 handle which has left the Morning Star formation on the daily lacking confirmation. With bullish reversal patterns absent for the pair, a break below 1.0630 would pave the way for a drop to 1.0560.
USD/CAD: Set To Extend Declines On Break Below 1.0630
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A glance at the four hour chart reveals a Bearish Engulfing candlestick formation near 1.0670 which helped herald an intraday drop for the pair. Given the close proximity of current prices to support at 1.0620/30 new shorts may be better served on a break lower.
USD/CAD: Bearish Engulfing Pattern Delivers Intraday Drop
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Market Analyst, DailyFX
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