- USD/CAD Technical Strategy: Sidelines Preferred
- Dojis Signaled Hesitation Near The 1.0900 Barrier
- Daily Close Below 1.09 Required To Open 1.0810
USD/CAD may be at risk of a more significant correction with a Bearish Engulfing formation in its wake.
A daily close under the 1.0900 floor would be required to cast the immediate risk lower and setup a test of the 1.0810 mark. However, at this stage signs of an uptrend remain intact for the pair, which suggests the possibility for a retest of the recent highs should not be neglected.
Traders should note the upcoming Canadian employment data has the potential to yield significant volatility for the pair. This could negate some of the technical signals offered. Times and expectations available on the economic calendar.
USD/CAD: Bears Wrestling Control Of Prices
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart reveals a Hammer formation near 1.0880. However, the key reversal pattern failed to find follow-through which casts doubt over the potential for an intraday recovery for USD/CAD.
USD/CAD: At A Crossroads Near 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.