USD/CAD Faces Make-Or-Break Moment As Reversal Pattern Emerges

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • USD/CAD Technical Strategy: Sidelines Preferred
  • Morning Starpattern awaiting confirmation
  • 1.0700 continues to hold as key resistance

USD/CAD is set for a make-or-break session as the pair awaits confirmation of a Morning Star pattern on the daily. Follow-through from a successive up-day and break above 1.0700 would offer a bullish reversal signal, and pave the way for a recovery to 1.0810.

USD/CAD: Key Reversal Pattern Awaiting Confirmation

USD/CAD Faces Make-Or-Break Moment As Reversal Pattern Emerges

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

An examination of the four hour chart reveals a Bullish Engulfing candlestick formation which yielded an intraday recovery for USD/CAD. While resistance looms nearby at 1.0700 a bearish reversal pattern remains absent, which casts doubt on the potential for a pullback.

USD/CAD: Bullish Engulfing Pattern Yields Short-Lived Recovery

USD/CAD Faces Make-Or-Break Moment As Reversal Pattern Emerges

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

By David de Ferranti, Market 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.

Related Forex Analysis
  1. USD/CAD Retests Critical Barrier After Bearish Pattern Falls Flat
    Forex News

    USD/CAD Retests Critical Barrier After Bearish Pattern Falls Flat

  2. USD/CAD Technical Analysis: Down Move Pauses Below 1.12
    Forex News

    USD/CAD Technical Analysis: Down Move Pauses Below 1.12

  3. USD/CAD Responds to Channel Support
    Forex News

    USD/CAD Responds to Channel Support

  4. USD/CAD Technical Analysis: Support Found Above 1.11
    Forex News

    USD/CAD Technical Analysis: Support Found Above 1.11

  5. USD/CAD Bearish Pattern Awaits Validation To Warn Of Deeper Pullback
    Forex News

    USD/CAD Bearish Pattern Awaits Validation To Warn Of Deeper Pullback

Trading Center